Exactly this, AWS is basically a license to print cash for them. The profit margin is huge. It is why they can do food at a loss and if needs be the football. AWS makes enough to prop up all their other business avenues. Their investors also have no desire for quick profits, they understand the long term strategy of Amazon and are perfectly happy with how it is all going so no pressure from that either. In 10 years time Amazon food will be profitable along with any other current loss making ventures they have. The idea some have that Amazon will fail is imo well wide of the mark. They will get stronger and stronger.
Some very insightful posting TCIB