it's cloud dollars day over here, and the headline for me so far as i go through Alphabet and Amazon financial results is that Q4 was the first quarter at least since 2015 that AWS didn't increase its operating income
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so what's the story? well, AWS operating margin is narrower than it's been since 2017, but it's more important that revenue growth slowed to the lowest rate since Amazon has been disclosing these numbers
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meanwhile we have to hand it to Google for getting just a little bit closer to making cloud profitable
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here's the big AWS revenue chart. over $80 billion in 2022
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but here's what i'm talking about when i'm talking about operating income growth at AWS
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and finally here is the big revenue growth chart for Q4
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great stuff as usual from - and i'll note here that Ruth Porat said today that for 2023 'we expect total capex to be generally in line with 2022 with an increase in technical infrastructure versus a decline in office facilities'
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$GOOG CY22 Q4 CAPEX
$7.6B
+19% QtQ
$GOOG CT22 CAPEX
$31.5B
+28% YtY
CAPEX up but the four year CAPEX refresh cycle didn't really happen
(Company CAPEX, not just Cloud)
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How the heck can AMZN still trade at a PE of 100?
There is no way it is going to grow its earnings 5x from here
