Amazon Web Services (AWS) had total revenue of $19.7 billion in the second quarter, up 33% year over year, but growth has slowed and the big question for the company is how it’s doing for the rest of the year Enterprise customers will hit uncertain economic environment.
Amazon said it expects profit margins to fluctuate due to a potential recession and investments in technology infrastructure and labor costs.
In the first quarter, Amazon’s cloud services division reported revenue growth of 37% and $18.44 billion in revenue.
When asked about possible slower growth in the coming quarters, a phenomenon that rivals like Microsoft and Oracle are also preparing for, company officials said profit margins declined sequentially but saw room for future overall growth in the business.
“The margin rate will fluctuate in this business,” said Brian Olsavsky, Amazon’s chief financial officer, according to a transcript of…