Additionally, the company issued revenue guidance that was in line with forecasts but warned rising costs would suppress operating income. Amazon has been able to successfully do this in recent years, helped by the explosive growth from Amazon's web services (AWS). However, as earnings have climbed, the investment thesis shifted from revenue growth to earnings growth. This sounds high, but when adjusting for earnings growth in 2021 of 56.4%, it seems fairly reasonable. The AWS unit's operating income accounted for nearly all of Amazon's total operating income of $3.9 billion.

Source: Forbes May 01, 2020 17:03 UTC