Key Points
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Even though it’s the largest company in the world by sales, Amazon is reporting double-digit sales growth.
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E-commerce is still its biggest business, accounting for more than half of total sales.
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E-commerce growth is slowing down.
For all intents and purposes, Amazon (NASDAQ: AMZN) had a fantastic third quarter. Revenue increased 12% year over year, and operating income was up 61%. This is the largest company in the world by sales, and conventional wisdom, as well as the law of large numbers, suggests that companies slow down as they get bigger. Not so Amazon, with its consistent double-digit growth.
The bulk of it is coming from the Amazon Web Services (AWS) cloud computing business. Although this segment has been around for a while now, it’s recently been enjoying massive growth from artificial intelligence (AI) development, much of which happens through its cloud platform.
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https://www.aol.com/articles/1-number-concern-every-amazon-092000000.html