From Nasdaq:

Amazon’s e-commerce business generates the most revenue but only makes up 15.6% of total U.S. retail sales. Most of Amazon’s operating income 74%, comes from its cloud platform, Amazon Web Services (AWS), which posted consolidated operating income of $23.6 billion in the first nine months of 2023. AWS advantages contribute to this profitability, making it the biggest profit machine for Amazon.

E-commerce growth is still on the horizon, with massive potential for Amazon. However, the real opportunity for Amazon lies in AWS, as AI continues to grow. Amazon CEO Andy Jassy predicts that 5% to 10% of global IT spending will shift to the cloud over the next 10 to 15 years, positioning AWS as a major winner. This positive outlook suggests a strong future for Amazon’s long-term earnings and stock prices.



Read more: Think Amazon Rakes In Most of Its Profit Through E-Commerce? Nope — 74% of Its Operating Income Instead Comes From This.