Amazon released earnings last night. Despite a beat on revenue, earnings came in well below expectations and the market is trading the stock down 2-3% pre-market. I have updated the various slides and note 3 main themes:

Revenue growth accelerated from recent quarters for product sales; AWS growth was lower but still above 40%
Services now responsible for 35% of net sales as Amazon seeks to improve margins and hold less inventory
Earnings were much lower given the investments in North America and international markets like India

The last few quarters showed profits that exceeded Wall Street's expectations and made the general public finally see that Amazon does truly make a profit. That comfort level brought a stock performance gain of almost 40% year to date. This quarter brought a much lower margin and profit that may bring back some of those fears. With that said, the business looks strong and continues to provide us with more of the same: revenue growth, move to services and investing in growth. Nothing to worry about here.