[kennend3]

I think by "declining profits" they are referencing a specific line of business, not "Amazon" proper.

Look at Alexa as an example.. It has racked up substantial losses yet "Amazon" is profitable.

I've often heard that Amazon's retail devision isn't a big money maker?

I think people are seeing actions Amazon is taking to shore-up its retail side (less generous return policy, their "Free for all " market place, commingling inventory..).