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CLAIM #7403 · Amazon.com Inc (AMZN) · 2024Q4 earnings call · Feb 6, 2025 · due Feb 6, 2027

over the long term, we feel the margins will be comparable to non AI business as well.

Brian Olsavsky · CFO

PENDING
graded after results covering Feb 6, 2027 are reported

How to check this claim

Look at: AWS segment operating margin

It came true if: AWS operating margin trends toward and becomes comparable to AWS's non-AI/overall historical operating margin range (roughly within a few percentage points), rather than remaining a persistent drag versus prior non-AI margin levels

Where: AWS segment operating income/margin disclosed in company quarterly earnings releases and 10-K/10-Q filings

In context

ies over the past two years. How should we think about that more normalized especially as you're investing that much more in generative AI? And then just on the store side, can you talk about the impact of less volume going through your shipping partner UPS going forward? And are you able to manage that incremental shipping that's required? Thanks. Andy Jassy: Yes. Sure, Doug. Thanks for your question. First on AWS, yeah, we have seen a lot of fluctuation in operating margin AWS, and we've said historically that they will be lumpy as you say over time. And, you know, the stage we're in right now, AI is still early stage. It does come originally with lower margins and a heavy investment load, as we've talked about. And in the short term, over time, that should be a headwind on margins. But over the long term, we feel the margins will be comparable to non AI business as well. So, you know, we're very pleased with the strong growth focus on driving efficiencies in all of our data centers, saving power, reusing power in new generative AI applications, and just generally reducing costs. So very pleased with the performance of the AWS team, and I look forward to a strong 2025. I'll take the UPS one, which is, really UPS has been a partner of ours for many years, and we expect that that we'll continue to be partners with UPS for many years. As you know, increasingly over the last several years, particularly accelerated by the pandemic, we have shipped a much larger percentage of our shipments through our logistics network, our own last-mile transportation network, and I think that's in part because we needed to scale up so fast in the pandemic with everything being

Verify independently

SEC filings for AMZN · Claim quote is verbatim from the 2024Q4 earnings call.