Great result overnight.
After the US close Amazon is trading up an extraordinary 10% taking its $1.2T valuation another $120B higher ... an increase roughly equivalent to the aggregate market cap of all stocks listed on the NZX
Amazon reported second-quarter earnings on Thursday that sailed past analysts' estimates and issued guidance that points to accelerating revenue growth. The stock rose more than 10% in extended trading.
EPS: 65 cents vs. 35 cents expected, according to analysts surveyed by Refinitiv
Revenue: $134.4 billion vs. $131.5 billion expected, according to analysts surveyed by Refinitiv
Wall Street is also watching other key numbers in the report:
Amazon Web Services: $22.1 billion vs. $21.8 billion in revenue, according to StreetAccount
Advertising: $10.7 billion vs. $10.4 billion in revenue, according to StreetAccount.
Disc: Hold
Craigs have a TP of $170 and say it's a buy.
Return on equity 15 percent
3 year sales growth CAGR 11 percent
3 year EPS growth CAGR 350 percent
Forward PE 55 against 5 year avg of 61
Amazon (AMZN) has now delivered three consecutive quarters of improving cash flow and profitability in its retail operations. The significant investment into its fulfilment capabilities and its strong relative value proposition through faster delivery is allowing AMZN to continue to win market share. AMZN's retail operations are now showing strong operating leverage to top line growth. The slowdown in its cloud services operations is cyclical in our view and AWS is well positioned to benefit from the expected surge in investment into generative AI, through its current service offerings and partnerships it has with other generative AI companies. The improving fundamentals in its retail operations and structural growth tailwinds in its cloud services should drive solid revenues and improving margins over the medium term. AMZN offers strong value relative to its history and growth fundamentals.
Disc Have been a happy holder since last year.
From CNBC
JPMorgan says buy Amazon (AMZN) into weakness. AWS cloud unit is accelerating.
https://www.cnbc.com/2023/10/03/jim-cramers-top-10-things-to-watch-in-the-stock-market-tuesday.html
In general I've picked up that analysts are positive on AMZN, more so for the moment than say AAPL and even GOOGL at this point. Vague point I know. The megas have a bright future.
Gosh up 77 percent for the year. Will it continue I see Cramer and Soros still see upside.