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Amazon not only recovered their dip, but renewed their 52 week max several times already. And they don't even make much from online retail. To make matters more

by m0zg 7y ago

Amazon not only recovered their dip, but renewed their 52 week max several times already. And they don't even make much from online retail. To make matters more interesting, AWS seems to be _much_ busier than usual, and spot capacity is all but gone, at least at the price we were paying before. I'm not even sure why that is.

throwaway1777 7y ago
Because people are online more since they can’t go outside.
Leherenn 7y ago
I think I've seen the number +15% for traffic. Lots of video conferencing/entertainment/online shops will have increased traffic.
dmitriid 7y ago
> AWS seems to be _much_ busier than usual, and spot capacity is all but gone, at least at the price we were paying before. I'm not even sure why that is. With so many people inside everyone is using online services: streaming, shopping, chatting, video, audio, gaming. Almost anything "online" is very likely to run at least something on AWS these days.
- rstupek 7y ago
  Also include businesses provisioning virtual desktop computers using AWS
dragonwriter 7y ago
> To make matters more interesting, AWS seems to be _much_ busier than usual, and spot capacity is all but gone, at least at the price we were paying before. I'm not even sure why that is. Because a lot of the online services that are seeing higher use (whether it's telework support, e-commerce, or otherwise) are, in whole or in part, hosted on AWS.
jnbiche 7y ago
Amazon makes almost 50% of their annual revenue from online retail. Many billions of dollars. It's by far their biggest product category. Yes, through accounting magic, they're making the majority of their profits via AWS, but that's part of Bezos's long-term strategy and could be changed on a dime (at the potential expense of the long-term growth he's targeting). Top line, most of their business is from online retail, not AWS. (edited because my original was a bit of a flame, and didn't clarify profit vs revenue distinction)
- doingmyting 7y ago
  Amazon makes substantially more from AWS than its retail segment. Retail revenue is higher but revenue does not equal profit. For instance last quarter AWS revenue was 13% compares to retail but it contributed 52% of operating income.
  - deleted 7y ago
    [deleted]
  - kolmogorov 7y ago
    Those are accounting tricks
    - lmm 7y ago
      Citation needed. It seems pretty common-sense that retail would be lower-margin than digital services.
- m0zg 7y ago
  Revenue doesn't matter. Profit does. Most of their profit is from AWS.
  - robocat 7y ago
    Division profits are mostly an accounting ghost. Tomorrow they could decide to use the AWS profits for growth, and reduce the growth spending on Amazon by the same amount, and suddenly the sense of your sentence is reversed.

by m0zg 7y ago

throwaway1777 7y ago

Because people are online more since they can’t go outside.

Leherenn 7y ago

I think I've seen the number +15% for traffic. Lots of video conferencing/entertainment/online shops will have increased traffic.

dmitriid 7y ago

> AWS seems to be _much_ busier than usual, and spot capacity is all but gone, at least at the price we were paying before. I'm not even sure why that is. With so many people inside everyone is using online services: streaming, shopping, chatting, video, audio, gaming. Almost anything "online" is very likely to run at least something on AWS these days.

rstupek 7y ago
Also include businesses provisioning virtual desktop computers using AWS

dragonwriter 7y ago

> To make matters more interesting, AWS seems to be _much_ busier than usual, and spot capacity is all but gone, at least at the price we were paying before. I'm not even sure why that is. Because a lot of the online services that are seeing higher use (whether it's telework support, e-commerce, or otherwise) are, in whole or in part, hosted on AWS.

jnbiche 7y ago

Amazon makes almost 50% of their annual revenue from online retail. Many billions of dollars. It's by far their biggest product category. Yes, through accounting magic, they're making the majority of their profits via AWS, but that's part of Bezos's long-term strategy and could be changed on a dime (at the potential expense of the long-term growth he's targeting). Top line, most of their business is from online retail, not AWS. (edited because my original was a bit of a flame, and didn't clarify profit vs revenue distinction)

doingmyting 7y ago
Amazon makes substantially more from AWS than its retail segment. Retail revenue is higher but revenue does not equal profit. For instance last quarter AWS revenue was 13% compares to retail but it contributed 52% of operating income.
- deleted 7y ago
  [deleted]
- kolmogorov 7y ago
  Those are accounting tricks
  - lmm 7y ago
    Citation needed. It seems pretty common-sense that retail would be lower-margin than digital services.
m0zg 7y ago
Revenue doesn't matter. Profit does. Most of their profit is from AWS.
- robocat 7y ago
  Division profits are mostly an accounting ghost. Tomorrow they could decide to use the AWS profits for growth, and reduce the growth spending on Amazon by the same amount, and suddenly the sense of your sentence is reversed.