Cloud Business Drives Amazon's Profits
As our chart illustrates, Amazon’s profit has largely been driven by its cloud business in recent years. Amazon Web Services (AWS), the leader in the highly competitive market for cloud infrastructure, accounted for 50 percent of the company’s operating profit in the past quarter, despite contributing only 13 percent to the company's net sales.
For many years, Amazon has reinvested nearly every dollar it earned in its long-term growth. The size and success of Amazon Web Services has made that impossible though, resulting in Amazon posting record profits in four consecutive quarters now.
This chart shows Amazon's operating profit in the AWS segment and in total.