There’s a lot of assumptions in that post so I just want to add that everyone’s situation is different and these calculations may not apply to your strategy.
My point is that dividends can be good for wealthy people who want investment income but are less good or even bad for average people.
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Interesting graphic!
It’s incredible how AWS only makes up 12% of revenue (less even in 2020) but is responsible for ~60% of profits. I really hope it has to get spun-off eventually. 
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I can see the 12.5% part, where does the 60% figure come from?
They break it out in the earnings, P14
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I think it would have to be forced on Amazon to spin off AWS, the new CEO set up AWS and has grown it into what it is today. I can’t see him letting it go without a fight.
There are a couple of contradictory things to consider here.
If AWS was sold off as a separate company, it could make the resulting parts even less profitable, as AWS could charge more for the service that all the other parts rely on as a core part of the business. This is significant, as they are all engineered around AWS and couldn’t easily move to a competitor’s service so would have to pay whatever AWS charge.
The other side is that if AWS is a separate legal entity within the Alphabet group, it’s possible they are already charging the other internal companies too much, as this could be a strategy to reduce profits in groups that might have less favourable tax situations. For instance, if Amazon retail has tax liabilities in many countries, if they pay more to use the AWS service, that can increase the profits for the US-based AWS and reduce them elsewhere.
Breaking a company up reduces the potential benefits of either situation, and probably isn’t particularly advantageous to the business.
You meant amazon group I assume not Alphabet? Yep, I don’t see an advantage per se, I was hinting at regulatory pressure. Amazon has been under pressure already and AWS and Amazon together are too powerful in the minds of many.
I don’t think that Amazon is artificially charging itself more through AWS or shifting profit to AWS. The numbers are in line with pre-aws-success years. Also the first part would be illegal in many countries.
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Haha yeah, I’ve obviously not had enough caffeine this morning! 
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Amazon smashes it. Shares at all time high after hours.
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but ended up down the following day.
The uncertainty of the stock market. Sometimes you’re ahead sometimes you’re behind, The race is long, and in the end, it’s only with yourself.
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The dip in AMZN seems pretty negligible compared to all my other US stocks.
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My portfolio is flat YTD because I’m mostly long tech like Amazon. Money is moving out of stocks in general because a fear of inflation may lead to a rise in interest rates. Money is moving out of tech and into “recovery” stocks.
But I think Amazon is sticky. Once you’re on Prime, you just carry on ordering needless shit through it, even if your local shops are open for business again.
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shortly after
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Ok so Amazon has just continued to dip ever since I bought it. I’m at the point of thinking of selling as I’ve had enough but something tells me it might recover at some point to help mitigate my losses? Thoughts pls folks
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