Both Sales and Earnings Rise Sharply at Amazon
Link: Both Sales and Earnings Rise Sharply at Amazon
One initiative that has not yet yielded measurable results is Amazon Web Services, in which the company rents out parts of its infrastructure, like its storage computers, to smaller companies that do not want to develop skills that Amazon has honed over the years. Mr. Bezos said it was still too early to judge whether Web Services could generate the same revenue as retail sales. "The market sizes are potentially very large," he said. "How large it can be over what time frame, we’ll have to wait and see. But we are going to keep inventing in that area."
Amazon killed their earnings numbers yesterday and today their stock has popped by 22%, good for them. It was great to see Jeff Bezos specifically call out their web services program on the earnings call.
I am sure that their platform initiatives will be a money-maker for them in time, but it takes a while to build up this kind of business (particularly since so many of their services are totally unique). But Amazon has shown in the past that it’s can build a new business with patience and discipline so I’m sure they’ll get there in a reasonable timeframe.
