Amazon's profits fall (and will likely keep falling) from that 1-day Prime shipping switch

"I know what you're thinking, but this is actually fantastic news!"... That's the vibe we're getting from Amazon's 3rd quarter earnings report. The stock dropped 9% despite the reassuring pillow talk from CEO Jeff Bezos:

• “Customers love the transition of Prime from two days to one day — they’ve already ordered billions of items with free one-day delivery this year."

True, people love not waiting for packages... so what's the cost? Amazon's revenues rose 24% to $70B, but shipping costs surged much faster: Up 46%. That ate away at profits, which shrank by 26% to just $2.1B. And heads-up — Amazon also expects to make half as much profit this holiday quarter as the last one. Other highlights:

• The profit puppy: Sales at Amazon Web Services, the cloud-beast that runs most of the internet (pretty much), rose by 35% and brought home the majority of the profits.
• New-ish physical stores: Sales dropped. Dropped. We don't usually see that from Amazon (except Fire phone. RIP.). Those book stores and cashier-less Amazon Go are still finding their way.
• The fine arts: Marvelous Mrs. Maisel now has 8 Emmy's and a new season in December.