Amazon's (NASDAQ: AMZN) cloud-computing business is a monster. Amazon Web Services (AWS) scoops up around one-third of global spending on infrastructure-as-a-service and platform-as-a-service, and it's become a mission critical provider to many of its customers. Free from managing their own servers, AWS customers can scale their infrastructure quickly and painlessly.
When shoppers arrived at the opening of Amazon’s first Fresh store in the UK to try its “just walk out” technology in early 2021, many found there was already a wait to just get in.
Amazon's net sales grew by 9% year over year to $149.2 billion in the fourth quarter. AWS's revenue rose 20% to $21.4 billion. "Starting back in the middle of the third quarter of 2022, we saw our year-over-year growth rates slow as enterprises of all sizes evaluated ways to optimize their cloud spending in response to the tough macroeconomic conditions," Chief Financial Officer Brian Olsavsky said during a conference call with analysts.