Amazon's cloud business reports 35% growth in the third quarter, trailing estimates

from its Azure cloud on Wednesday, though the company doesn't disclose actual sales figures for the unit.

For the past four years, AWS has provided the bulk of Amazon's operating income. In the third quarter, AWS operating income totaled $2.26 billion, up 9% from the year-ago period and below the $2.55 billion FactSet consensus estimate. "Costs associated with building AWS marketing teams and greater infrastructure spending, relative to the prior year, will continue to work against margin in the back half of the year," Stifel analysts, who have a buy rating on Amazon stock, wrote in a note distributed to clients this week. "We expect AWS margin, which fluctuates from quarter-to-quarter, will be down y/y due to investment.

In the third quarter, AWS delivered 71% of Amazon's total operating income and 13% of its total revenue.

GCPcloud rideordie

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

What would it take for Amazon to spin out Amazon Web Services? - Business InsiderCalls to break up Big Tech have renewed speculation Amazon will spin off the AWS business into a separate company. But Amazon may simply not have enough incentive.
Source: BusinessInsider - 🏆 729. / 51 Read more »