Amazon’s Retail Ecosystem Strength Overshadows AWS Dominance in Market Narrative
Amazon's stock trajectory reflects an underappreciated reality: while AWS remains the crown jewel, Prime and retail operations now deliver consistent profitability. Subscription revenue grew 12% YoY to $12.2 billion last quarter, with advertising services surging 23% to $15.7 billion. The July Prime Day event shattered records, demonstrating the flywheel effect of membership, media, and commerce integration.
This retail momentum provides ballast against cloud volatility. Where AWS acts as the growth accelerator, Prime has evolved into the steady-state engine—a dynamic that propelled AMZN's 93% rally since 2022. The maturation of fulfillment networks and delivery speed enhancements create operating leverage often overlooked in earnings analyses.
