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A comment on AWS Drives More Than Half of Amazon's Operating Income. Parent comment

Re:AWS Drives More Than Half of Amazon's Operating Income by PopeDotNinja on Friday February 01, 2019 @05:56PM (#19059592)
> Specifically when it comes to Amazon, because Amazon really has razor thin margins in its retail sector

What do you consider thin margins? Their overall margins are better than Walmart's.

Amazon: 65_932_000 / 177_866_000 = 37% [1]

Walmart: 126_947_000 / 500_343_000 = 25% [2]

[1] https://finance.yahoo.com/quote/AMZN/financials?p=AMZN

[2] https://finance.yahoo.com/quote/WMT/financials?p=WMT

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Re:AWS Drives More Than Half of Amazon's Operating Income by mcrae on Friday February 01, 2019 @07:25PM (#19060096)
Just looking at Q4 results [0], looks like operating margins for the businesses are:

US Retail: 5% [$2,251 / $44,124] Intl Retail: -3% [-$642 / $20,849] AWS: 29% [$2,177 / $7,430]

Really striking diff between Retail and AWS biz.

Walmart, for what its worth, had operating income of $20B on $500B in revenue, so about 5% there too.

[0] https://ir.aboutamazon.com/static-files/a5035fcd-5646-45df-b...

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Re:AWS Drives More Than Half of Amazon's Operating Income by altmind on Friday February 01, 2019 @06:21PM (#19059751)
Operating margin is not Gross Profit/Total Revenue, its Operating Profit/Total Revenue. You were not surprised by the number 37% you got?
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Re:AWS Drives More Than Half of Amazon's Operating Income by greedo on Friday February 01, 2019 @06:18PM (#19059729)
That's the gross margins for ALL of Amazon's business, so the fat profits of cloud are included. Their margin on physical goods must be lower.
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