Amazon is the other tech giants had to report after the bell investors

focusing on demand and growth for its cloud business AWS.

Deirda Bosa digs into those numbers for us in today's tech check.

Hey D

so Julia the single most important thing for investors this quarter it may be that

rate on Amazon's cloud business over the last six quarter growth has flowed

significantly look at that.

It went from 40% year of year growth at the end of 2021 to just 16% in the first quarter

and it's expected to come in at 10% in tonight's most recent report, but if it comes in any lower than that,

to state the obvious here, that would bring that critical number into the single digits and

raise concerns that something has fundamentally changed about the business and that it's not

just pressure from a weaker macro backdrop as we've seen over the last six quarters but

maybe something else that Amazon is losing ground to its competitors.

And here's why that matters so much.

AWS, the cloud business, makes up less than 20% of Amazon's total revenue,

but it makes up more than 100% of operating income. It is the profit engine that essentially allows

Amazon to make money losing bets and other areas like streaming, grocery,

devices, health care, and oftentimes even its core online sales.

Remember that is often a money losing business, especially internationally.

So AWS is the backbone of the so-called Amazon Flywheel helping to let Amazon make more

additions more perks to that prime subscription that is at the center of it all.

Amazon's current CEO Andy Jassy he was one of the main architects of AWS

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