Submitted by Much_Blacksmith_9865 t3_yibwdr in wallstreetbets
LeCheval t1_iuic58i wrote
Reply to comment by [deleted] in Visual breakdown of AMZN Q3 FY22 Income Statement by Much_Blacksmith_9865
Look at the profit margin for AWS compared to the entire rest of Amazon’s business.
AWS
- Revenue = $20.8B
- Operating Profit = $5.4B
Rest of Amazon
- Revenue = $106.3B
- Operating Profit (Loss) = ($2.98B)
If Amazon were to immediately sell off everything except for its AWS portion of the company, it would (theoretically) increase profits by ~$3B. Everything other than AWS looks like a money sink.
spagetidoodle t1_iuj38oh wrote
If you controll the full market at a loss you are worth more than if you controll small amout of the market at a small profit. Amazon have money to play monopoly
ankole_watusi t1_iuj641f wrote
If you control the full market at a loss eventually governments will crack down to prevent becoming a monopoly. And the unfair practice of “buying market share”
And this would be very damaging.
boygito t1_iujaw92 wrote
No they won’t. Governments only crackdown if a monopoly is hurting the public to make obscene profits. If a company is losing money, hrs hard to argue they are hurting the public
ankole_watusi t1_iujdp5l wrote
It’s predatory and yes they do. Bait and switch.
They don’t generally do it till the prices go up after complete control though.
Gummit is slow.
hellish0098 t1_iuivi9m wrote
Well…we need a more detailed breakdown to identify which businesses are actually losing money, I wanna bet those physical stores and prime content are huge money drainers
ankole_watusi t1_iuj5q4a wrote
Haha plus they would have a huge captive customer for AWS.
[deleted] t1_iuisqz9 wrote
[deleted]
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