The FAANG Index Fund is presumed to decrease by one, but this might just change your mind

After the company's first-quarter reports disappointed investors, Amazon.com Inc. (AMZN) shares fell 14% in one trading session. Operating cash flow, free cash flow and operating income all fell for the retail behemoth.
 
WAN CHAI, Hong Kong - June 8, 2022 - PRLog -- This is in sharp contrast to AMZN's previous earnings report, which showed increases in cash flow, operating income and profit as well as double-digit sales growth. So you're probably ready to sell your AMZN stock. Alternatively, if you are not a stockholder, you should avoid AMZN at all costs. But first let's hold on for a minute. Let's look at the one number that might change your mind.

First, let's take a look at why AMZN didn't have a stellar earnings report across the board. It comes as no surprise. In its recent results report, the firm mentioned problems such as inflationary pressures and labor supply constraints. That happened in the fourth quarter of the previous year. Cash flow had already started to decline at that point and the sales growth had slowed to single digits. AMZN mentioned inflation and supply chain issues in its most recent report. The crisis in Ukraine has also certainly put a strain on income.

This is the awful news. Now let's get to the good news. That's the one figure that could persuade you to include AMZN in your portfolio right now and that's what Amazon Web Services, the company's cloud computing division, is doing.

When compared to the same quarter the previous year, AW'S operational income increased by 56%. AMZN has typically relied on this unit to generate revenue. This means that even if the retail sector experiences some difficulties, AWS might continue to drive growth. AWS also announced roughly a 37% growth in sales year over year to more than $18 billion. The yearly sales run rate is currently approaching $74 billion.

The rise of AWS shows no signs of slowing down. The company landed new contracts with large corporations like Telefónica, S.A. (TEF) and The Boeing Company (BA). AWS has also just announced 16 additional zones in the United States for the location of its equipment and services, with another 32 planned globally.

Established in 2015 and headquartered in Hong Kong, Enbridge International Consulting Limited is an independent boutique asset management Firm committed to serving retail and institutional investors as well as affluent high net worth individuals. As a boutique Firm, our ability to offer customized financial advice is second only to the vast variety of financial products and services at our disposal. We focus on investment vehicles that deliver significant appreciation and an absolute sustainable return.  Please visit our website https://enbridgeconsulting.com/

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