Amazon (AMZN) / Jeff Bezos

[winston]

not vested

Amazon.com, Inc (AMZN US) Shares jumped 10.33% last Friday after it reported strong top-line growth and guidance that overcame concerns on bottom line noise.

Net sales increased 7% YoY to US$121.2bn, pushing comfortably past the analyst consensus by US$2.04bn, led by a 33% gain in AWS sales and surprisingly strong performance in advertising.

Meanwhile, a US$2bn net loss for the quarter was largely explained away by one-time charges. Namely, the company took a US$3.9bn charge related to its stake in Rivian Automotive (RIVN US).

Source: KGI

[behappyalways]

Amazon Cuts 100,000 Employees From Workforce In A Single Quarter
https://www.zerohedge.com/economics/ama ... le-quarter

[winston]

not vested

Amazon.com Inc. – Cost pressures surpassing healthy demand

2Q22 revenue beat expectations, but earnings missed modestly. 1H22 revenue at 45% of our FY22e forecasts, while normalised PATMI came in at 38%, excluding a pre-tax valuation loss of US$3.9bn from Rivian Automotive.

Faced with US$4bn incremental cost from external factors: higher fuel prices, trucking, air and ocean freight rates. Higher energy costs to hurt margins, with 4% FX headwinds in 3Q22.

We believe that earnings will remain suppressed due to increasing inflationary costs in the near term; our FY22e assumptions remain unchanged.

We downgrade to NEUTRAL with an unchanged target price of US$133.00 based on DCF with a WACC of 6.4% and terminal growth of 5.0%.

Source: Phillips

https://www.stocksbnb.com/reports/amazo ... hy-demand/

[behappyalways]

Did Amazon Buy iRobot To Map Inside Your Home?
https://www.zerohedge.com/technology/pu ... -your-home

[behappyalways]

Amazon Blocks Negative Reviews Of Its Woke Lord Of The Rings Series
https://www.zerohedge.com/political/ama ... ngs-series

[winston]

not vested

Amazon opens the email marketing floodgates to try to boost sales

AMAZON.COM will let brands and merchants send marketing emails to shoppers, a risky bid to boost sales that could inundate inboxes with spam.

Independent businesses that sell more than half of the products on Amazon.com.

The company captures 37.8 per cent of all online spending in the US, 6 times more than its closest competitor Walmart.

Advertising services generated US$8.8 billion in Amazon’s second quarter, up 18 per cent from the same period a year earlier.

Source: Bloomberg

https://www.businesstimes.com.sg/techno ... oost-sales

[behappyalways]

Reducing warehouse operations in North America and Europe is a troubling sign of overcapacity issues and reflects souring consumer health. The question is if warehouse reductions in North America and the rest of the world are over.


Amazon "Suspends" Construction Of New Warehouses In Spain As Consumption Boom Falters
https://www.zerohedge.com/markets/amazo ... om-falters

[behappyalways]

Amazon Air Deliveries Slump As Shipping Slowdown Worsens
https://www.zerohedge.com/markets/amazo ... down-fears

[behappyalways]

Amazon Reportedly Halts Corporate Hiring For Retail Business
https://www.zerohedge.com/markets/amazo ... l-business

[winston]

not vested

Amazon

mazon’s online marketplace is a behemoth. According to eMarketer, Amazon is on track to account for nearly 40% of all U.S. online retail sales in 2022.

However, selling goods online is a relatively low-margin business. The true value of Amazon’s marketplace is the attention it brings to the company’s higher-margin operating channels.

For instance, Amazon has pivoted its online retail success into signing up well over 200 million people worldwide to a Prime membership. This 200-million-plus figure is as of April 2021, and Amazon has presumably added tens of millions of additional Prime members, thanks to its exclusive deal to carry Thursday Night Football. In exchange for giving Prime members shipping perks and access to exclusive content, Amazon nabs an annual run-rate of $35 billion in high-margin subscription sales.

Amazon is also making waves with its world-leading cloud infrastructure service. Amazon Web Services (AWS) accounted for close to a third of cloud-service spending during the second quarter, which is noteworthy, given that cloud infrastructure growth is still in its early stages. Although AWS contributes about a sixth of Amazon’s net sales, it regularly generates well over half of the company’s operating income.

In other words, Amazon’s retail segment isn’t anywhere near as important as the growth from the company’s higher-margin operations. Even with the growing prospect of a U.S. recession, Amazon’s cash flow needle continues to point higher. That’s what makes it such a no-brainer buy right now.

Source: Daily Trade Alert