Amazon’s cloud‐services unit continued to underpin overall profitability in the most recent quarter. AWS generated approximately 33 billion in revenue—up 20% year-over-year—and contributed roughly 11.4 billion of the company’s 21.7 billion in non-GAAP operating income, representing nearly 53% of total adjusted profits. These figures highlight AWS’s ongoing margin advantage over the company’s retail operations and reinforce its status as a critical profit engine for Amazon.

While e-commerce still accounts for about 162 billion of third-quarter revenue, its capital-intensive nature has weighed on margins. Management has deployed significant capital into warehouse robotics and autonomous delivery pilots, positioning the business to realize material cost savings over the next five years. Industry analysts project that a broad rollout of these technologies could improve e-commerce operating margins by several hundred basis points, narrowing the gap with AWS and contributing to more balanced profit streams.

In the third quarter, Steinberganna Wealth Management initiated a position of 6,893 shares in Amazon, valued at approximately 1.5 million, making the stock its 28th largest holding at 0.7% of its portfolio. Meanwhile, Vanguard Group increased its stake by 2.1%, bringing its total to 849 million shares, and State Street added more than 5 million shares, reflecting broad institutional conviction. These moves follow robust earnings and signal that major investors see continued upside in Amazon’s diversified business model.