Analyzing Amazon’s Performance
Quarterly Financial Trends Quarterly revenue reached a new high but operating income continued to decline.
Change in Revenue Revenue grew 34% or $11B YOY in Q3. More than half came from North America but AWS had the biggest percentage growth.
Change in Operating Income The 40% decline in operating income was driven by declines in North America and International. AWS is only 10% of sales but it delivers most of the profit.
Cost Trends Margins are declining as SG&A and Technology costs grow faster than revenues.