Amazon's services business is booming, generating significant income and driving long-term growth potential.

From Nasdaq: 2025-05-23 04:35:00

Amazon.com (NASDAQ: AMZN) is known for its retail website and delivery services, but its earnings statement reveals it’s more than just an online store. In the first quarter of 2025, Amazon recorded $64 billion in product sales, with costs exceeding sales due to digital media content expenses.

While Amazon’s retail business is massive, its services segment generated $92 billion in income. Services include third-party seller fees, AWS sales, advertising, Prime membership fees, and digital media content subscriptions. Amazon’s success lies in its ability to leverage its services and generate revenue from multiple sources.

Despite being a major retailer, Amazon’s strength lies in its services business, which accounted for nearly 60% of its $156 billion revenue in the first quarter. Operating income was $18 billion, showcasing the company’s profitability and growth potential in the services sector. Amazon’s expansion into services is driving its long-term performance.

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