Amazon gears up for holiday season demand


Amazon (AMZN) says it will hire 70K workers for the holiday season.

The company expects customer demand for the period be 40% higher than last year.

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Comments (24)
  • Paulo Santos
    , contributor
    Comments (33042) | Send Message
     
    40% higher ... and revenues will grow 1/2 that.

     

    So again it looks likely that earnings will be affected.
    1 Oct 2013, 07:21 AM Reply Like
  • Gary J
    , contributor
    Comments (10356) | Send Message
     
    "The company expects customer demand for the period be 40% higher than last year"

     

    AWESOME NEWS.
    1 Oct 2013, 07:24 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (33042) | Send Message
     
    Actually it doesn't... revenues will grow around 20%, costs will be growing faster than revenues, at least for temporary workers.
    1 Oct 2013, 07:34 AM Reply Like
  • BriansGirl
    , contributor
    Comments (99) | Send Message
     
    AMZN is going to need it to fight off the lawsuits on 9 alleged patent infringements against them.
    1 Oct 2013, 09:34 AM Reply Like
  • BigJ1260
    , contributor
    Comments (204) | Send Message
     
    Whats amazing - is to look at estimates vs actuals - correlated to stock price - Next Qtr still shows $0.74 - everyone knows they will guide flat to down again ! - wont matter. 2014 shows almost $3 in earnings ! - no way, will guide flat to small loss (again!)

     

    all while revenue growth slows

     

    Been going on,like this for 2 years now
    ANY other company would have stock cut in half minimum.
    1 Oct 2013, 01:08 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33042) | Send Message
     
    Still, Q4 is AMZN's (and most retailers') best, and it should still be profitable.

     

    2014 is near certain to be lowered substantially, though.
    1 Oct 2013, 01:14 PM Reply Like
  • BigJ1260
    , contributor
    Comments (204) | Send Message
     
    "Flat to Down"
    means below last year EPS Paulo
    Which I do believe they will guide to that range
    1 Oct 2013, 04:12 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33042) | Send Message
     
    It's impressive how disconnected from earnings the stock got.

     

    Nobody really believes the story or anything else, it's going like a trading sardine where everything but the name is irrelevant.

     

    Even today's story was ludicrous. 40% growth on temps vs 20% growth in revenues does not bode well.
    1 Oct 2013, 04:18 PM Reply Like
  • André Fernon
    , contributor
    Comments (111) | Send Message
     
    I had to read the statement five times to realise that they were referring to the 40% increase in the number of temporary hires as opposed to a 40% increase in customer demand. I would be surprised if revenue is up even 20%.

     

    These releases look, at best, intentionally ambiguous if not downright misleading.
    1 Oct 2013, 06:35 PM Reply Like
  • Gary J
    , contributor
    Comments (10356) | Send Message
     
    Better read it a sixth.
    1 Oct 2013, 06:50 PM Reply Like
  • André Fernon
    , contributor
    Comments (111) | Send Message
     
    Do you actually believe they are referring to a 40% increase in customer demand?
    1 Oct 2013, 06:54 PM Reply Like
  • Gary J
    , contributor
    Comments (10356) | Send Message
     
    I do not see how to read it any other way

     

    "expects customer demand for the period be 40% higher"
    1 Oct 2013, 07:12 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33042) | Send Message
     
    Actually that's entirely false, Gary. Revenues will be up around 20%, not 40%. But the temp costs will indeed rise 40%.
    1 Oct 2013, 07:16 PM Reply Like
  • André Fernon
    , contributor
    Comments (111) | Send Message
     
    "Amazon.com, Inc. (NASDAQ:AMZN) is creating more than 70,000 full-time seasonal jobs across its U.S. fulfillment centers this holiday season in order to meet an increase in customer demand, a 40 percent rise over last year."

     

    Gary, you might want to look at the actual press release rather than the headlines generated from it. The 40% refers to the 70,000 temporary hires. Looks like Amazon achieved their goal with the ambiguity.
    1 Oct 2013, 07:12 PM Reply Like
  • Gary J
    , contributor
    Comments (10356) | Send Message
     
    Predictions of the trackers are all over the map anyway. Here is another one. The holiday season will be the best yet by far and those betting against AMZN stock will be (further) buried.
    2 Oct 2013, 06:44 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (33042) | Send Message
     
    The holiday season will, indeed, be the best ever. AMZN will show growth over last year, so it couldn't be any other way.

     

    But then again, temps will grow faster than overall revenues, so at least there AMZN will be losing some profitability. One wonders what will happen elsewhere.

     

    But one thing is certain, AMZN will still fall incredibly short of producing the kind of profits which would make its present quote sustainable. At $0.80 per share it would need 400 "best ever" holidays to do so ...
    2 Oct 2013, 06:49 AM Reply Like
  • Thalidomide Baby
    , contributor
    Comments (1202) | Send Message
     
    Please short Amazon heavily so there will be buyers later to push it over $400. That's only 25% higher from here.

     

    Mr. Santos, when do you think Amazon will hit $400? This year or next year? I'm thinking it won't be until next year since we are running out of time this year.
    2 Oct 2013, 06:39 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33042) | Send Message
     
    Thalidomide, do you expect AMZN to cross $1000 on faith alone?
    2 Oct 2013, 07:04 PM Reply Like
  • Thalidomide Baby
    , contributor
    Comments (1202) | Send Message
     
    That is going to take a couple of years!
    3 Oct 2013, 04:56 AM Reply Like
  • André Fernon
    , contributor
    Comments (111) | Send Message
     
    Thalidomide, You might be right. The hedge funds are the ones driving the share price up. This has nothing to do with fundamentals. My view is 90% of the volume traded is hedge fund related.

     

    The results will come out (granted it may not be this quarter's results) and all the long, retail investors will be like lambs to the slaughter for the same hedge funds who will reverse their positions (probably in the after market) and start going short. Fingers crossed, you are not long when that happens.

     

    Andre
    4 Oct 2013, 03:02 PM Reply Like
  • Gary J
    , contributor
    Comments (10356) | Send Message
     
    "My view is 90% of the volume traded is hedge fund related."

     

    Wow 90%. Like these top holders?

     

    Capital World Investors
    T. Rowe Price Associates, Inc.
    Vanguard Group, Inc.
    Fidelity Management and Research Company
    Capital Research Global Investors
    4 Oct 2013, 05:14 PM Reply Like
  • Thalidomide Baby
    , contributor
    Comments (1202) | Send Message
     
    Amazon is gearing up for the holidays, alright!

     

    I just got one of the new Kindle Paperwhites and it is wonderful.

     

    Then new Kindle Fires look great, too.

     

    Plus there's this:

     

    Amazon Readies Set-Top Box for Holidays
    Streaming Video Device Would Rival Roku, Apple TV

     

    http://bit.ly/15eWmWt
    6 Oct 2013, 12:17 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33042) | Send Message
     
    The KIndle eReader might actually make some money, but overall there's nothing new or money-making. eReaders are already a contracting business.

     

    A set-top box wouldn't be a money-maker either. AMZN will probably launch one just because the Roku is often a good seller in its website.
    6 Oct 2013, 12:22 PM Reply Like
  • Thalidomide Baby
    , contributor
    Comments (1202) | Send Message
     
    I don't believe that the e-reader market is contracting. Eventually they will replace paper books. It's hard to believe that schools aren't already using them completely instead of paper books.

     

    That is a good reason to launch a set-top box, since the Roku and Google Chromecast and Apple TV sell so well. Amazon is developing a complete network, providing video-on demand and even producing its own series.

     

    Amazon will be able to supply everything we can possibly consume in the future, both for the body and mind, if not the heart!
    7 Oct 2013, 07:54 PM Reply Like
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