Seeking Alpha

Bernstein's Carlos Kirjner doesn't think Amazon's (AMZN) gross margin expansion is over: he...

Bernstein's Carlos Kirjner doesn't think Amazon's (AMZN) gross margin expansion is over: he predicts the company will sport a 2014 GM of 28.3%, up nearly 600 bps from 2011 levels. He also sees fulfillment spending, which has soared in recent quarters, declining as a % of revenue, and capex for Amazon Web Services trailing that business' huge revenue growth. This leads him to forecast 2014 EBITDA of $8.9B, above a $6B consensus, and free cash flow of $3.8B.
Comments (3)
  • TheAxe
    , contributor
    Comments (132) | Send Message
     
    Well if carlos is right...it would wow me!!!!!
    14 Aug 2012, 02:07 PM Reply Like
  • HarryWanger
    , contributor
    Comments (181) | Send Message
     
    2014, huh? That's a long time to wait for a valuation that is already trading for this assumption. Put your money elsewhere, since this is obviously priced in.
    14 Aug 2012, 02:18 PM Reply Like
  • alexco12
    , contributor
    Comments (197) | Send Message
     
    Prediction: After significantly lower EBITDA and free cash flow in 2014, Carlos Kirjner announces 2016 EBITDA and free cash flow to new record levels!! Yay
    15 Aug 2012, 09:57 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|