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2021-10-29
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Historic shift for Amazon as product sales fall below 50% of revenue for first time
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(Nasdaq: AMZN) reported over $110 billion in revenue, a 15% increase, for its fiscal third quarter ending Sept. 30, with a quarterly profit that plummeted due to increased spending. The Seattle company's overall growth didn't match the pace it set during the Covid-19 pandemic, but the more profitable sides of its business, cloud computing and advertising, had significant gains.</p>\n<p>Amazon Web Services pulled in $16.1 billion, a 39% increase from last year, giving the cloud computing division its fastest growth since 2019. AWS had a profit of $4.8 billion.</p>\n<p>On an earnings call with investors, Chief Financial OfficerBrian Olsavskysaid the rapid growth was a mix of customers moving to cloud-based infrastructure during the pandemic and suppressed spending in 2020.</p>\n<p>Other tech giants are seeing their revenue grow and profits buoyed by cloud computing divisions. 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