Amazon reported their latest quarter on Thursday with the stock falling nearly 7% after hours before recovering to close down 1% on Friday. We learned a few items from the latest quarter:

The reinvestment years are back. Up to 2 years ago, I would typically hear, “Amazon makes no money.” In reality, they were making plenty of profit and were relentless in redeploying those profits into reinvestments in their flywheel. The latest narrative from Amazon is investing in same day and next day delivery. For what its worth, it seems to be working. North America and International saw improved growth rates quarter over quarter.
AWS continues to see slower growth. This will continue as the numbers are larger and the competition continues to heat up with Microsoft and Google.
Servicing 3rd party sellers and advertising will become the new narrative. As AWS growth slows, the second and third leg of profitability wind up. Selling ads on Amazon properties and off Amazon remains incredibly profitable. Maintaining one of the largest selling platforms and further extending their fulfillment network off Amazon properties for 3rd party sellers and major brands will become the new growth narrative.

Bottom line: The core online business returns to higher growth rates as AWS slows and services will start to drive the new narrative. And now for the charts…