Amazon (non-AWS) portion aka CDO (Consumer + Devices + Ads) is currently only valued at 200 Billion $ and is losing it value really fast. In comparison, this is lower than Costco. AWS value from equivalent Azure and other cloud providers is currently put at 750 Billion. The non-AWS portion has current rate of 15 Billion loss per year. If you remove Ads which brought 30 Billion revenue (at 5 Billion expense), the losses would drastically increase to 40 Billion per year. 10 Billion of this loss is coming from Devices. So overall, the Amazon retail is sinking 30 Billion per year. In case the US govt splits the AWS and CDO into two companies, it will not take long before Amazon Retail will go bankrupt or get to the valuation of Albertson. I also wonder why AWS folks are still keeping up with this shit. During my time at Amazon, the AWS engineers are overworked and has to go through a higher promo bar than retail counterparts - and still earns the same salary. Some of this information is sourced from here - https://www.washingtonpost.com/technology/interactive/2022/amazon-shopping-ads/ - https://www.fool.com/investing/2021/08/08/amazon-investors-are-getting-its-e-commerce-busine/
Wow you are a dumbass
Stopped buying from Amazon long ago so, there is one less person who feeds that 👹
You realise Ads run on retail website and AWS's biggest customer is retail & prime.
That's why I added Ads into the picture. Without Ads, the Retail is already dead. Also, I know the numbers. I can tell you that even when the Retail was biggest customer, its share of revenue was in single digit of percentage for AWS.
Are you serious? 🤣🤣
Your numbers of retail sinking $30b a year are drastically wrong. Where did you even get this from? The profit isn't crazy, but retail is breakeven, at least. I feel like this is a bait to get the real numbers out of the ones who know.
I added the source and these numbers are present in your Quarterly revenue sheet.
Our Quarterly release never said retail is losing $30b a year, or even $10b a year. What are you smoking?
Who’s valuing aws at 750b? Lmao it’s a 250b business at todays interest rate.
I added the source.
Gov won't split Amazon because they aren't monopoly in any BU. CDO won't go bankrupt. There are a lot of warehouses and supply chains all tied together. With more of the last mile run by Amazon itself, it is a money making machine. But it is cyclical & margins won't be as high as AWS. CDO made a lot of revenue 3 years back. Amazon may let go anything that isn't making revenue. Not CDO or even whole foods which is now tied to CDO with returns counters.
AWS has the lowest promotion bar. Retail has the slowest promotion process.
As someone that’s been on both, hard disagree. It strongly depends on team. There are simply more higher levels in AWS because the technical complexity is generally higher. For some of the newer aws teams, I do agree with what you’re saying. But it’s too hard to generalize
Op didn’t read/understand couple of things. AWS’s 750B valuation is when Amazon is valued at 1.7 T and they used the forward earnings multiple of 70, which is laughable in the present interest rate regime.
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That's BS The valuation is not a constant, it changes by macro conditions and our internal changes to our product/service. Don't worry about retail+ads valuation, we need to be concerned about profitability. All those empire building idiots waste so much money on Alexa, Prime video content, etc. US govt. Won't do shit to split the firm, that would be a shit storm to capitalism and frankly there is no reason to split Amazon. AWS folks can play superior but your skills are not as diverse as you think, you are replaceable and without retail you wouldn't have existed or scaled as well. Amazon is the most customer obsessed firm I know and inspite of all the bad investments we have made we still bias towards the customers. I hope you check the reducing margins on many AWS projects, every mature business goes through these cycles. Now stop this speculation and go back to work, it's almost Sunday.
Most customer obsessed but the worst employee obsessed that I ever worked with. Even if US govt. won't split it, shareholders are already demanding for it. At this point, basically Amazon is funding its monopoly from another part of the business which it would not have been able to do it if it was a standalone company.
Our culture is 💩 We don't take care of our employees, we treat them like a roll of bounty. Wipe and use the next one. But our business is amazing, the learnings and challenges are great. We are solving problems that are unique and will build a strong sustainable business for long term value.