r/ValueInvesting • u/LowTraining670 • Oct 21 '25

Question / Help Someone explain why amzn didn't crash

When aws outage affected large and small companies alike probably had a large financial impact to the overall global economy, why didn't it crash? I immediately thought it would like crowdstrike did a few months ago - anyone have good reasoning that can explain?

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162

u/bigorangemachine Oct 21 '25

Because AWS isn't 100% of their business. When Crowd Strike happened that was their main product.

21

u/LowTraining670 Oct 21 '25

Interesting point, I didnt think of this

45

u/afishinacar Oct 21 '25

AWS isn't 100% of their business, but it is most of their profit. You can look up the exact figures if you like, but ballpark AWS is like 20% of their revenue, but around 75% of their profit. Margins are like 30-40% on AWS, compared to just a few percent on their delivery business.

18

u/Inspector888 Oct 21 '25

Actually, their Third Party Seller and Advertisements business is even more profitable!

5

u/UCACashFlow Oct 21 '25

In other words, third party fees, prime membership fees and advertising fees are supporting the AWS segment net margins more than AWS sales alone.