george scribe
introduction
My thesis is that the June 2022 quarter was great for Amazon (NASDAQ:AMZN) key segments. As per the Q2 ’22 release, the top three segments AWS, Third-Party Providers (“3P”) and Advertising reported Y/Y revenue increases of 33%, 13% excluding F/X and 21% excluding F/X. Your Q/Q Revenue rose 7%, 8%, and 11%, respectively. Y/Y sales for the first-party (“1P”) segment were down 4%, but this lower-margin segment is less predictive of the bottom line.
As CFO Brian Olsavsky said on the Q2 2022 conference call, the AWS segment can be resilient by demonstrating the value it offers when we hit a potentially tough patch in the economy. In relative terms, the numbers show that Apple (AAPL) privacy changes are hurting Shopify (SHOP) merchants advertising on Meta (META) much more than Amazon 3P merchants using Amazon advertising.
Amazon Q2 Revenue by Segment
The quarterly revenue increases for AWS, 3P and advertising are highlighted below:
Segment revenue (release 2Q22)
AWS
In contrast to the trading segments…
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