Amazon (NASDAQ:AMZN) has become a story of two companies. The retail side of the business is struggling due to multiple economic challenges. The cloud computing side gears up for battle against Microsoft (MSFT) Azure and Alphabets (WELL)(Google) Google Cloud.
Both areas of the business require and deserve focused attention in order to increase shareholder value.
Since I last yearned for an AWS spinoffOn the retail side, macroeconomic conditions have deteriorated and the case has strengthened significantly.
The dynamics of a spin-off
A company may outsource part of its business for many reasons, which are discussed below. Investopedia has a great explanation here too. The most important thing to know is that a spin-off creates independent entities and existing shareholders will receive ownership interest (stock) in both companies upon closing.
What segments does Amazon operate?
Amazon currently operates in three segments:…