Given that this is revenue, and given that Amazon has a "market-share-or-death" pricing model for margins, this really tells you nothing about AWS's profitability. It could be running at a loss (it wouldn't surprise me.)
I'd be much more bullish on Amazon as an investor if they gave any guidance as to when they will actually start taking profits. There's just something that feels wrong investing in a company that very well may never become profitable in my lifetime and whose share price will just float on hope for a day that will never come.
I still think Amazon is an amazing company, but their approach to providing shareholder value (the role of a public corporation) is definitely a little unorthodox.
I'd be much more bullish on Amazon as an investor if they gave any guidance as to when they will actually start taking profits. There's just something that feels wrong investing in a company that very well may never become profitable in my lifetime and whose share price will just float on hope for a day that will never come.
I still think Amazon is an amazing company, but their approach to providing shareholder value (the role of a public corporation) is definitely a little unorthodox.