Amazon reported record profit in 2018, earning $10.1 billion in net income compared to just $3 billion the prior year. Considering the company hardly recorded any profit until 2016, this sudden cash influx represents a new era for Amazon.
So what's changed?
Despite its dominance in e-commerce, online sales are not actually a main profit engine for Amazon. Instead, Amazon Web Services, the company's cloud computing division, has actually generated the majority of Amazon's operating income since 2016. Profits from advertising and third-party sellers are also booming.
While Amazon has traditionally been valued based on growth over profitability, these recent earnings trends have investors reconsidering how the company should be valued today.
from Top News & Analysis https://cnb.cx/2I9FImUvia IFTTT
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