by winston » Thu Aug 04, 2016 8:59 pm
not vested
Tech Earnings Star No. 3: Amazon
Amazon.com Inc. (Nasdaq: AMZN) is one of the reasons why I like to remind investors that a stock’s “sticker price” isn’t really all that important.
What’s crucial is the amount of money you make.
I say that because many investors voice concerns about a stock that’s as “expensive” as Amazon, which trades at around $760.
But had you bought back on Feb. 11 when the market bottomed, you would have made nearly 54.5% on your money. That’s better than triple the S&P 500′s profits over the period.
You can chalk up much of that to the e-commerce king’s status as the king of cloud computing, too. Amazon Web Services (AWS) continues to dominate the cloud infrastructure services market with a 30% market share.
That unit is one of the big reasons why Amazon’s second-quarter report was the fifth straight profitable quarter in a row and its third consecutive quarter of record profits.
AWS saw a 58% jump in sales for the quarter, 87% more than the company’s overall revenue increase of 31%. Those cloud sales also helped the firm more than double its profit margins to 4.2%.
For CEO Jeff Bezos, this was a big win. His goal is to hit $10 billion in cloud sales this year. Quarterly sales for AWS came in at roughly $2.9 billion.
And the company continues to invest in its core e-commerce franchise. To speed delivery of its huge product offerings, it will add 18 new warehouses this quarter.
Its Prime membership, which costs $99 a year, gives it a big advantage over its competitors, including Wal-Mart Stores Inc. (NYSE: WMT), which, in terms of market value, it cruised by last year.
Source: Money Morning
It's all about "how much you made when you were right" & "how little you lost when you were wrong"