It's not that bad. From a finance and accounting perspective, Amazon’s retail business provides strong synergies with its cloud services. Although the retail segment has a relatively low net profit margin, it generates stable and substantial cash flow for the company. In contrast, cloud services are highly profitable but require significant upfront investment in hardware, and the associated asset depreciation is substantial.

By combining these two businesses, Amazon can achieve a more balanced capital structure. Compared to other cloud service providers such as Oracle, Amazon can maintain a lower debt-to-equity ratio, reduce its debt burden, and sustain stronger overall financial health. At the same time, it can achieve higher overall profit margins compared to traditional retailers like Walmart.