Back again for another quarter from the toll booth of eCommerce. Amazon. A couple of takeaways:

AWS surges. Whilst the 19% growth increase year over year might seem small. It is an acceleration from prior quarters and is the first $4b quarterly growth figure since 2022.

2. Amazon Services = Margin. Results for margin beat estimates as services grew 15% and product sales slowed to a 4% growth rate. Services contributed to 81% of the total quarterly year over year growth.

3. Despite the positive AWS and margin numbers, one issue is the slowing in Advertising. Prior quarter growth was 24-26% and this quarter was <19%. With product sales only climbing slightly, this isn’t a surprise but definitely one to watch. Is Amazon increasing the Third-party seller services to the detriment of Advertising?

Was there anything to cause worry? No. If you are focused on profits, this was a phenomenal quarter. If you are focused on sales, the core Product business is slowing as Amazon pulls growth lever via Services.