Jassy has done a super job of cutting fat and maximizing the retail profits. The desperate need of many for a selling environment online had led to the major increase in advertising spending.
The concerns about AWS are more important because it is AWS not retail which justifies the P/E multiple that Amazon stock carries.
The drop in the stock is tied to the justification for the multiple not the Amazon bottom line.
Microsoft’s cloud revenues also softened, Google has had headwinds for its cloud operations as well.
I will readily make a SELL recommendation for anyone holding Amazon stock. I do not see a growth source to justify a P/E even close to 47.
What does it mean to the economy? Amazon shareholders will have less to spend. Good thing Jeff already has his boat.
Cloud revenues may be close to their top for all providers. Maybe the AI boom in the cloud won’t happen because companies might be loath to invest. Maybe electricity use and prices might not climb as much without this growth in the cloud.