back to article Remember when Bezos whined about having too much money? Amazon's Q3 will help out with that

Amazon, a cloud giant with a supplementary online souk, saw a rare drop in profits in its latest financial results, published Thursday. For its 2019 third quarter [PDF], ended September 30: Revenues of $70bn were up 24 per cent from the year-ago quarter and ahead of $68bn analyst predictions. Net income was $2.1bn, down 27 …

  1. G R Goslin

    This is good?

    A quarterly income of $4.23, on an investment of $1660. This is good?. I think I'll hold on to my Building Society shares a bit longer,

    1. Tromos

      Re: This is good?

      The people who bought in around 10 years ago have mostly had even less quarterly income. I don't hear many complaints as their $50 investment has gone up to $1660. How do your Building Society shares compare?

      Real investors don't just look at dividend yield.

      1. DougS Silver badge

        Re: This is good?

        The fact remains it still has a P/E of nearly 100, so it will have to more than quintuple in profit to grow into that valuation. Will it? Maybe, but if it does it'll have to be AWS that generates that extra profit not the storefront.

        1. ratfox Silver badge

          Re: This is good?

          To be fair, it does not seem unlikely that cloud computing is going to keep growing a lot. But online commerce is also growing, and Amazon's share of it is pretty huge as well. I wouldn't dismiss the storefront so casually.

          1. DougS Silver badge

            Re: This is good?

            The store is a very low margin business, and there are no barriers to entry for competitors both big (Walmart) and small/specialized (Newegg) so they will never be able to increase those margins. There isn't enough growth possible in retail to come close to justifying their valuation. AWS is their only hope, unless they enter a new line of business where they can make billions in profit every quarter. Those are rather few in number, however.

      2. spold Bronze badge

        Re: This is good?

        Whatever, if the shares are delivered in a size B05 Amazon box the cat will be happy. I've even asked for this on some deliveries and they have obliged.

  2. LDS Silver badge
    Joke

    It doesnt look they saved much...

    .... turning off all those expensive Oracle databases....

    1. Neal L

      Re: It doesnt look they saved much...

      Well the benefits of that probably won't be seen for a while.

    2. <script>alert('the register');</script>

      Re: It doesnt look they saved much...

      Yes. They saved so much money as soon as they ran the shutdown command it started transferring money back to their bank account. So much money in fact it froze.

      1. macjules Silver badge
        Coat

        Re: It doesnt look they saved much...

        That was just Mrs Bezos taking her share out.

  3. Benson's Cycle

    Interest rates

    Amazon and Tesla are only possible because of extremely low interest rates. Effectively, to get a return people have to invest in businesses because leaving the money in the bank results in interest lower than inflation.

    If US debt funding ever starts to falter and interest rates rise, it will be an interesting time for future economists.

    1. Gordon 10 Silver badge
      FAIL

      Re: Interest rates

      I think you are conflating two completely different business models. Tesla <> Amazon.

      Indeed Telsa and many of the other VC funded startups who have never/barely made a profit fall into that category, Amazon most assuredly do not.

    2. a_yank_lurker Silver badge

      Re: Interest rates

      Amazon and Tesla are very different companies and are in very different industries. Amazon is primarily in retail and the cloud. Retail does not attract vulture capital as the profits are modest at best but a well run retailer will tend to make consistent money, key well run. Badly run retailers go out of business which is generally why retailers die. The cloud does attract the vultures but Amazon got into out of their own needs so AWS has mostly been funded internally. Much of Amazon's sales are cash and carry or subscriptions with very little credit extended by Amazon. Thus interest rates have an indirect effect on Amazon by affecting the available cash of their customers. As a broad range retailer/cloud provider Amazon is not as susceptible to market forces as many niche retailers/providers are.

      Tesla sells automobiles. Most cars are financed/leased which means the cost of the monthly payment is tied very directly to interest rates. What Tesla's exposure compared to other car manufacturers I do not know. Also, EVs are still more of a niche product which makes Tesla more susceptible to market forces.

  4. Martin Summers Silver badge

    One day delivery? Yeah after a 3 day wait or more for dispatch in many cases! In fairness that tends to be their prime certified 3rd party sellers doing that more so. Annoying!

    1. Dan 55 Silver badge

      If they're fulfilled by Amazon, it's supposed to be in Amazon's warehouse ready to send alongside Amazon's own stuff. If somehow they have to wait days before telling you it's dispatched, it's in another warehouse of theirs on the other side of the continent or it's not really in their warehouse at all.

      Got to keep the Prime racket going though.

  5. rcxb Bronze badge

    1-day delivery just means...

    ...you don't have to wait as long for the Amazon contract delivery driver to take a picture of it by your door, then steal it himself before anybody else in the neighbourhood gets the chance.

  6. fredesmite Bronze badge
    Mushroom

    $50,000,000

    You would need to make $50,000,000 a year for the next 2000 years to be as rich as him or Gates

  7. Korev Silver badge
    Joke

    Amazon profits down? Cry me a river...

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