![]() ![]() Now, as Amazon faces heightened antitrust scrutiny and calls to break up Big Tech, the question has been raised again - and Amazon's third-quarter earnings add to the discussion as AWS once again drove profits for the rest of the company.Īmazon reported a less-than-expected profit in its third-quarter earnings on Thursday - $4.23 a share on revenue of $70 billion. Amazon Web Services raked in $9 billion for the quarter.įor years, Amazon has been asked the same question – will the retail giant spin off Amazon Web Services, its market-dominating cloud computing subsidiary, into a separate business?įirst, the calls came from Wall Street, as many analysts and investors believed the growing cloud computing business would be worth more on its own than it is as a smaller piece of the Amazon empire. Amazon reported a less-than-expected profit in its third-quarter earnings on Thursday - $4.23 a share on revenue of $70 billion. ![]() NYU Professor Scott Galloway, who correctly predicted that Amazon would buy Whole Foods, takes the stance that a spinout is coming: "I predict by 2025, the most valuable company in the world will be AWS.".Elizabeth Warren (D-MA), Amazon and CEO Jeff Bezos aren't likely to give into political pressure. Most experts say that the headaches aren't worth the upside, and that despite the rhetoric of antitrust crusaders like Sen.That's not to mention that itself is hosted on Amazon Web Services, making the two difficult to separate. But a spinout would introduce new logistical and operational headaches as it had to staff up in fields like accounting and hire a new board of directors.AWS already runs largely independently, and has its own CEO and chief financial officer.Some experts believe Amazon and Amazon Web Services would be worth more as two separate companies.The business case for a spinout largely hinges on the notion that some customers are reluctant to sign on with Amazon's cloud, given that they compete with the company in markets like retail.That idea has come up every so often for at least the last six years, but Amazon Web Services CEO Andy Jassy has repeatedly dismissed such a move as unnecessary.Meanwhile, calls to break up Big Tech have renewed speculation Amazon will spin off the multibillion-dollar cloud business, Amazon Web Services, into a separate company.Amazon's market-leading cloud business once again drove profits for the Seattle-based company, pulling in nearly 72 percent of Amazon's operating income for the third quarter.Account icon An icon in the shape of a person's head and shoulders. ![]()
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