If you own Amazon, you probably feel better today than you did two years ago. Margins are improving. Cost discipline is visible. AWS remains dominant. But here is the uncomfortable question.
Great follow-up! Operating cash flow came in at ~140bn yoy up from ~116bn last year) so that is ~25bn more, however capex increase by ~50bn yoy, so that is the answer. The money went mainly to AWS data centers, servers, silicon, and AI compute infrastructure. You see a regime shift (high capex + better margins).
26 -> 4
Where did the extra 20 billions go? Share buybacks? Write-offs? (of what?)
Any insight into what category of expenditure grew to this size in this time scale?
Great follow-up! Operating cash flow came in at ~140bn yoy up from ~116bn last year) so that is ~25bn more, however capex increase by ~50bn yoy, so that is the answer. The money went mainly to AWS data centers, servers, silicon, and AI compute infrastructure. You see a regime shift (high capex + better margins).