The U.S. inflation rate tipped the scales at its highest level in 40 years (9.1%), and the all three major U.S. stock indexes were, at one point, firmly entrenched in a bear market. A stock split is an event that allows a publicly traded company to alter its share price and outstanding share count without any impact to its market cap or operations. A forward stock split reduces a company's share price to make it more nominally affordable for retail investors.
Amazon has paused once ambitious plans to plunge into physical shopping with thousands of new stores. The ecommerce giant has closed some Amazon Fresh groceries and Go convenience stores and won’t open more until it finds a format that “is differentiated in some meaningful fashion and where we like the economics,” chief executive Andy Jassy told analysts. As some would-be disrupters struggle, we are seeing the best environment in decades for incumbent companies to push back with innovative products and services of their own.
It's added to Amazon's overall costs -- from transporting goods to running warehouses. The bright spot always has been Amazon's cloud computing business, Amazon Web Services (AWS). First, let's talk about how AWS generally fits into the Amazon earnings picture.