Amazon Q1 Earnings: Advertising & Logistics Accelerate
Listening to Amazon Q1 earnings call. Let's get to the heart of it: Advertising and Logistics are runaway freight trains. One marketplace tidbit.
Advertising experienced ridiculous growth:
73% growth year on year.
Up to $6.9B in the quarter.
"Other" is a proxy for advertising.
Largest quarter ever except in Q4 2020.
The other item? Logistics.
AMZL Logistics increased capacity 50% in the trailing 12 months (compared to the prior period)
Capex increased 80% TTM.
Two big areas they are investing in:
Middle-mile: sort centers, air, line haul, etc.
Last-mile: delivery service partners (DSP - 100k drivers) + delivery stations.
Big investments throughout 2022 in AMZL. Majority of units going through AMZL today. Can you say UPS in the cross-hairs?
Marketplace tidbits
3P up 60% year on year
3P paid units up to 55% (up from 52% prior year)