Research archive for AMZN

Companies like Amazon, Google and Facebook need their clients to have access to the internet. Because they have already landed most of the existing connected client base they are desperate to see more people connected. So much so that they are willing to provide internet for free.

The other day I came across this interview with Jim Cramer and the CEO of Amazon Web Services, Andy Jassy. Some of the stats Andy quoted puts the potential of the AWS business into perspective.

Amazon is rumoured to launch new grocery store business in a quest to conquer the world. The company has already clocked online shopping, cloud computing, streaming and has put in a lot of work into advertising and healthcare.

Amazon is said to be seeking a tie-up for its long-suffering Chinese business with online market place Kaola, a company owned by tech giant NetEase. The e-commerce market in China is dominated by Jack Ma's Alibaba and Richard Liu's monolith JD.Com.

When a company reports its results, we immediately look at four key pieces of information. Firstly, its reported profits in Dollars or Rands per share, relative to market expectations. Secondly, sales revenues relative to consensus. These two tell you right away whether we are dealing with a 'beat' or a 'miss'. Thirdly, we look at the tone of the management guidance for the year ahead. Is the outlook good, or are they guiding us lower? Finally, and most importantly of all - what is the share price reaction.

Yesterday, Amazon unveiled Scout, a robot slave with six wheels to feed the appetite of the Amazon customer. Scout has a simple mandate; to deliver your packages to your door but only if you're a Prime Member living in Washington's Snohomish County. Sorry Jozi, not today!

Last week Barry Ritholtz went on a rant about share buy-backs; Bad Buybacks.

Last week Thursday, after the market closed, Amazon released third-quarter numbers. The numbers looked solid but the share price fell back 8%. In it's defence, the share price was up 7% the day before. The market has been very volatile of late making it is difficult to tell what is really moving the share price during this earnings season. Is it the numbers or is it market sentiment?

How can one possibly buy shares in Amazon now, after the stock has done so well? We get this kind of question from time to time, from new clients. The answer is, we expect them to go on doing well, and growing even further.

Lot's of subscribers means lots of potential in this day and age. That is why a company like WhatsApp was valued at $18 billion even though they had not worked out how to monetise the platform.

What a week! So many results, much wow. After yesterday's Facebook drama I was quite apprehensive about Amazon's quarterly update. The Seattle-based online retail giant has had a tremendous run, the share price is up 52% this year. That's right, up by more than half since 1 January 2018. Truly wonderful!

Amazon just had their robotic arm patent approved. This is a big deal because this arm can throw things around and catch things inside the Amazon distribution centres.

On Friday last week the US Supreme Court ruled that internet companies need to collect sales taxes (equivalent to our VAT) on sales made in states that they don't have a physical presence. Before, you were only required to collect sales tax if you had a physical presence in a state, which gave online retail a significant advantage over physical stores who were required to charge their customers extra sales tax. With the growth of e-tail, it was only a matter of time before the law was changed. Think of the billions in taxes states have lost out on.

Last week Amazon reported 1Q numbers, which far surpassed analyst estimations. For Amazon, you are never quite sure how much profit will drop to the bottom line from their billions in revenue; profits are a bit of an optional extra in their current growth phase.

I remember a time when Amazon used to stumble on to a profit every once in a while. These days, with Amazon Web Services (AWS) printing cash, profits are becoming the norm. Amazon reported 4th quarter and full year numbers last week Thursday which pleased the market and smashed expectations.