The pandemic caused Amazon’s revenues to boom with a huge expansion of its marketplace and Amazon Web Services (AWS). But the perfect storm arrived in 2022, as supply chain issues, high inflation, rising interest rates, falling consumer spending, and a strong Dollar hit company’s financials. Free cash flow dropped to the negative zone with -$23.5 billion in the Q2 2022 compared to positive Q2 2020 with $31.9 billion, though it seemed to be recovering in early 2023. Capital expenditures have eaten up most of the cash as they rose from $35 billion to $58.3 billion over the last three years. Amazon CFO, Brian Olsavsky, said the company is satisfied with investments in business development, and has reduced capital expenditures in Q4 2022.  Amazon is actively transforming into a service company with a rising share of AWS business that has boosted its revenues by 20% year-on-year in the last quarter of 2022. This is a much more marginable division of the company compared to the retail business, and is likely to become the major driver for Amazon growth. The other fast-growing segment is advertising. The segment has recorded sales of $37.7 billion during 2022 compared to $19.8 billion in 2019. Thus, the discount of 50% to AMZN stocks peak prices look very attractive for long-term investors.