Amazon (AMZN) / Jeff Bezos 02 (Nov 18 - Dec 26)

[winston]

not vested

It's Finally the Perfect Time to Buy Amazon Stock

by Luke Lango

The stock is trading around 1.8X trailing sales, more than two standard deviations below the stock’s five-year-average sales multiple.

Amazon’s online retail business will likely grow at a fairly steady 10% annualized clip over the next few years.

The physical store business is good for about 5% growth per year.

The ad business will likely grow around 20% per year, representative of market share expansion in a 10% to 15% growth industry.

And the cloud business will likely grow around 25% per year, in line with market estimates for cloud spending growth.

Mid-teens revenue growth over the next five years. Operating margins have room to expand to 10%, as the high-margin ad and cloud businesses comprise a bigger slice of the sales pie. When you run the math on those projections, it becomes clear that Amazon will easily be able to net about $8 in earnings per share by 2027.

Source: Hypergrowth Investing

[winston]

not vested

Amazon: Implied upside of 95%

Analyst Ivan Feinseth of Tigress Financial set a price target of $232.75 which implies approximately 95% upside from where it closed this past week.

Even though online sales account for the majority of Amazon’s revenue, online retail sales produce very thin margins.

In theory, the company’s online marketplace could stagnate for years, yet Amazon’s operating cash flow could double every two to four years, thanks to rapid growth from its ancillary operating segments.

One growth driver highlighted is Amazon Prime. As of April 2021, the company had surpassed 200 million global Prime subscribers. However, this figure is likely much higher now — especially with Amazon holding the exclusive rights to Thursday Night Football.

The other core catalyst is Amazon Web Services (AWS). Research firm Canalys estimates that AWS brought in 31% of worldwide cloud-service spending during the second quarter. With the exception of Microsoft (MSFT) Azure, no other cloud infrastructure service provider is within 23 percentage points of AWS.

The beauty of cloud computing is it’s still in its infancy. Thanks to the juicy margins associated with cloud services, AWS regularly accounts for more than half of Amazon’s operating income, despite generating only a sixth of the company’s net sales.

Valuing Amazon with traditional metrics has never worked well. Since the company tends to reinvest most/all of its operating cash flow, it makes more sense to examine its valuation relative to its cash flow.

After spending the 2010s at a median year-end multiple of 30 times cash flow, Amazon shares can now be purchased for about nine times Wall Street’s forecast cash flow in 2025. That’s a bargain.

Source: Daily Trade Alert

[behappyalways]

Amazon Implodes More Than 20% After Missing on Revenues, Disappointing On AWS, Catastrophic Guidance
https://www.zerohedge.com/markets/amazo ... c-guidance

[behappyalways]

亞馬遜積極進攻智慧家居 遭質疑背後盤算不單純｜FOCUS午間新聞 20221101
https://m.youtube.com/watch?v=OBZd6LaA6vg

[winston]

not vested

3 Reasons Amazon Will Deliver Better 2023 Returns

Key Points
Amazon tends to underpromise and over-deliver when it comes to financial results.
Wall Street is projecting EPS to grow sequentially in the first three quarters of 2023.
Amazon Web Services is the world’s top Infrastructure-as-a-Service provider.
At less than $100, Amazon is the cheapest it has been in a long time.

#1 - Earnings Have Already Bottomed
#2 - The Cloud Business Remains Underappreciated
#3 - Amazon Stock is Actually Cheap

Source: Market Beat

https://www.marketbeat.com/originals/3- ... 4A8F75D6B5

[winston]

not vested

1 Stock You Should Think Twice About Buying

The company expects net sales between $140 billion and $148 billion for the year's final quarter, below analysts’ expectations, representing a year-over-year improvement of as little as 2%.

For the fiscal third quarter ended September 2022, AMZN’s total net sales increased 14.7% year-over-year to $127.10 billion. However, its operating income declined 48% from the year-ago value to $2.53 billion, while its net income decreased 9% year-over-year to $2.87 billion. The company’s EPS declined 9.7% from the prior-year quarter to $0.28.

Free cash flow decreased to an outflow of $19.7 billion for the trailing twelve months, compared with an inflow of $2.60 billion for the prior period.

Source: ino.com

https://www.ino.com/blog/2022/11/1-stoc ... 2xPm3ZBxRY

[winston]

not vested

Amazon.com shares gained 12 per cent on news that chief executive officer Andy Jassy has embarked on a review of expenses, part of broader efforts to streamline the world’s largest e-commerce company.

Amazon said in a statement to Bloomberg News that its annual operating-plan review will have a particular focus on trimming expenses this year as it copes with a slowing economy.

The Wall Street Journal reported earlier that the assessment was underway and that employees in certain divisions have been told to look for jobs elsewhere in the company because their teams are being suspended or shut down.

The news boosted a stock that was already up on positive inflation news. The latest data on consumer prices came in better than expected on Thursday (Nov 10), easing concerns about Federal Reserve interest rate hikes.

Amazon shares rose to US$96.63, marking their largest one-day gain since Feb 4. They had been down 48 per cent this year through Wednesday, part of a rout that has hammered the biggest tech companies.

Already, Amazon has been taking increasingly aggressive steps to rein in expenditures. The company said last week that it was pausing “new incremental” hiring across its corporate workforce as it copes with a slower economy. Amazon has effectively stopped recruiting for new roles companywide, even at profitable divisions, such as its advertising business.

Amazon said on Thursday that it remains confident in its overall operations, as well as initiatives such as Prime Video, Alexa, Grocery, Kuiper, Zoox and its healthcare efforts.

Most big tech companies are hitting the brakes on hiring plans, but Amazon is dealing with an especially severe pandemic hangover. The company almost doubled its headcount during Covid-19 restrictions to handle a surge in orders from home-bound consumers.

When shoppers returned to their previous habits this year, Amazon had to pare back its logistics operations. As the economic outlook darkened and it became clear that a slowdown in online sales growth was here to stay, the cutbacks spread to Amazon’s corporate offices.

When Amazon forecast its slowest-ever holiday growth last month, chief financial officer Brian Olsavsky said the company was “taking actions to tighten our belt”.

Source: Phillips

[behappyalways]

Amazon To Fire 10,000 Employees, Largest Layoff In Company History
https://www.zerohedge.com/markets/amazo ... -employees

[behappyalways]

Amazon founder Jeff Bezos warns a recession is looming - and Americans should 'prepare for the worst'
https://markets.businessinsider.com/new ... ok-2022-11

[winston]

not vested

Amazon.com is starting a health referral service that seeks to link patients to virtual visits with providers who treat conditions like acne, hair loss and allergies.

The initiative, called Amazon Clinic, is the Seattle company’s latest effort to break into health care.

It already operates an online pharmacy, and is in the process of buying 1Life Healthcare, which manages clinics under the One Medical brand, for US$3.49 billion.

In a blog post announcing the service on Tuesday (Nov 15), Amazon called the new clinic a “virtual health storefront,” connecting patients to “award-winning telehealth providers.” The post didn’t name those partners.

The offering will be initially available in 32 US states and doesn’t yet accept insurance, Amazon said.

Patients select their condition, choose a provider from a list, and complete an intake questionnaire. From there, they connect directly to the provider through a “message-based portal.”

The marketplace model is a new direction for Amazon in health care. The company tried through Amazon Care to offer medical services itself, hiring and directing nurses and other medical professionals, but that initiative is being wound down.

Source: Phillips