Amazon.com, Inc. (AMZN) - NASDAQ
  • Wed, May 4, 1:15 PM
    • Speaking at Ira Sohn, Social Capital's Chamath Palihapitiya says Amazon (AMZN -0.4%) is the one U.S. company with the potential to reach a $1T valuation.
    • The main driver will be Amazon Prime. Though the company doesn't disclose membership, estimates put it at 80M globally, and that's just the beginning, says Palihapitiya.
    • As for IT, Amazon will do for it what it did for retail. Amazon Web Services is a "tax on the internet, a tax on innovation ... that’s owned by a for profit company that we can all own.”
    • Amazon, he says, will be a $3T company by 2025, with retail worth $1T, AWS worth $1.5T, and other operations and cash of $500B.
    • "Bezos is building the most durable company in the world."
    • Live blog
    | Wed, May 4, 1:15 PM | 58 Comments
  • Tue, May 3, 3:51 PM
    • Amazon.com (AMZN -1.8%) could exceed $240B in gross merchandise volume in 2016, Goldman Sachs says, driven by third-party sales growth across the board.
    • The company has increasingly been fulfilling third-party orders as sellers exploit Amazon's logistics investments. “1Q results are further evidence Amazon’s investment in infrastructure, logistics, and web services is accelerating market share gains, cash flow growth, and continued high returns on invested capital,” writes analyst Heath Terry.
    • He rates the company as a Buy, with $800 price target (19% upside implied from today's price of $671.52).
    • With third party units growing to 48% of the total (from 36% five years ago), “reported revenue growth has come to mask the true growth in Amazon’s share of retail spending.”
    • Fulfillment By Amazon grew to cover 38.2% of third-party orders in Q1, up from a year-ago 32.1%.
    • Now read A Sober Approach To Valuing Amazon »
    | Tue, May 3, 3:51 PM | 39 Comments
  • Fri, Apr. 29, 9:12 AM
    | Fri, Apr. 29, 9:12 AM | 9 Comments
  • Thu, Apr. 28, 5:35 PM
    • Top gainers, as of 5.25 p.m.: GIMO +16.2%. YRCW +14.2%. JMEI +12.9%. AMZN +12.7%. EXPE +11.5%.
    • Top losers, as of 5.25p.m.: MGA -14.9%. NPTN -13.0%. MOH -12.8%. SYNA -11.8%. NSR -10.4%.
    | Thu, Apr. 28, 5:35 PM | 12 Comments
  • Thu, Apr. 28, 5:04 PM
    • Amazon Web Services had Q1 revenue of $2.57B (+64% Y/Y) and an op. profit of $604M (up from $195M a year ago, and driving Amazon's EPS beat). Sales growth was slightly below Q4's 69%.
    • North American revenue rose 27% Y/Y to $17B, after growing 24% in Q4; op. profit rose to $588M from $254M a year ago (also boosted EPS). With the help of lower forex pressures, International revenue rose 24% to $9.6B, after growing 12% in Q4; the segment had a $121M op. loss vs. a $194M op. loss a year ago.
    • Top-line details: North American Media revenue +8% Y/Y to $3.2B. North American electronics/general merchandise (EGM) revenue +32% to $13.5B. North American Other revenue (ads, credit cards, etc.) +27% to $277M. International Media +7% to $2.5B. International EGM +31% to $7B. International Other +15% to $52M.
    • Financials: Gross margin (boosted by AWS and third-party sales) rose to 35.2% from 32.2% a year ago. Spending growth remains high: Fulfillment spend +34% to $3.7B, marketing +33% to $1.4B, tech/content +28% to $3.5B, G&A +16% to $497M.

      Trailing 12 month free cash flow minus lease principal payments and assets acquired via capital leases was $1.6B vs. $2.5B at the end of Q4 and -$1.2B a year ago. Amazon ended Q1 with $16B in cash/investments and $8.2B in debt.
    • AMZN +12.2% after hours to $674.47. The all-time high (set in December) is $696.44.
    • Amazon's results/guidance, earnings release
    | Thu, Apr. 28, 5:04 PM | 36 Comments
  • Thu, Apr. 28, 4:05 PM
    • Amazon (NASDAQ:AMZN): Q1 EPS of $1.07 beats by $0.49.
    • Revenue of $29.13B (+28.2% Y/Y) beats by $1.15B.
    • Expects Q2 revenue of $28B-$30.5B vs. a $28.33B consensus. Expects Q2 op. income of $375M-$975M vs. $465M a year ago.
    • Shares +10.7% after hours.
    • Press Release
    | Thu, Apr. 28, 4:05 PM | 103 Comments
  • Wed, Apr. 27, 5:35 PM
  • Wed, Apr. 27, 1:23 PM
    • Ahead of Amazon.com's (AMZN -2.2%) results coming after the close on Thursday, Wedbush's Michael Pachter hit up CNBC to predict strong revenue growth and investors who are happy so long as profits are growing.
    • Investors will "have a problem" if the retail business isn't growing in the high teens, which is "table stakes," Pachter says. He sees Amazon Web Services growing around 50% this quarter, a sustainable rate for coming quarters.
    • Other sell-side analysts are "out of touch" with CEO Jeff Bezos' thinking, Pachter says; analysts expect earnings to rise almost fourfold to $4.79/share, while he's expected $3.00 or even less.
    • Elsewhere, a judge has ruled that Amazon is liable for in-app purchases that are made by children without their parents' consent. The FTC had settled with Apple and Google over the issue in 2014, but filed suit against a more defiant Amazon.
    • The three companies now call for a password or opt-in to allow such purchases. The judge is seeking information from the FTC and Amazon about how much the company could owe here.
    • Now read Amazon's Australia Adventure »
    | Wed, Apr. 27, 1:23 PM | 18 Comments
  • Mon, Apr. 25, 8:18 AM
    • A monthly consumer survey conducted by Cowen Research found that Amazon (NASDAQ:AMZN) cut deeper into Wal-Mart (NYSE:WMT) and Target's (NYSE:TGT) market share in the grocery/consumables category.
    • The e-commerce giant showed 18% year-over-year growth, while sales at both Wal-Mart and Target fell back from a year ago.
    • The onslaught of Amazon into groceries has pushed retail chains toward innovation. Wal-Mart is expanding its new free curbside grocery pickup service this year, while Target is experimenting with a radical new program to charge for produce by freshness not weight.
    • No read Wal-Mart's Online Grocery Pickup Is A Double-Edged Sword 
    | Mon, Apr. 25, 8:18 AM | 57 Comments
  • Fri, Apr. 22, 1:47 PM
    • Amazon (AMZN -2%) has stopped directly selling certain popular video games and movies - game examples include Grand Theft Auto V, Assassin's Creed Syndicate, and Minecraft - to U.S. and/or U.K. customers not signed up for Prime. The items, some of which are offered to Prime subs at substantial discounts, can still be purchased by non-Prime customers via third-party Amazon sellers.
    • The move is the latest example of Amazon's aggressive efforts to grow its Prime subscriber base. The company hiked its free shipping minimum for non-Prime buyers to $49 from $35 in February, and rolled out a $10.99/month Prime option (to go with its $99/year option) a week ago. It has also been rapidly expanding the amount of ground covered by its same-day and 2-hour shipping services, which are free for Prime subs meeting minimum-order thresholds, and has been giving Prime subs early access to its Lightning Deals.
    • Past disclosures indicate Amazon has at least 46M Prime subs (the company refuses to share an official number) within a global active customer base that totaled 280M in 2015. In this year’s shareholder letter, Jeff Bezos called Prime (along with Amazon’s third-party seller marketplace and AWS) one of Amazon’s “three big offerings,”and declared the company wants Prime “to be such a good value, you'd be irresponsible not to be a member.”
    • Now read Amazon's Boost To Studios And Prime Should Not Be Ignored
    | Fri, Apr. 22, 1:47 PM | 26 Comments
  • Thu, Apr. 21, 2:34 AM
    • Establishing itself as a player in education, Amazon (NASDAQ:AMZN) has won a deal worth about $30M to provide e-books to New York City, the nation's largest school district.
    • The city's Panel for Educational Policy voted in favor of the three-year contract for the Department of Education, which will take effect in the coming school year.
    • For New York, there may be savings in buying more digital books, as well as the prospect of saving storage space for printed texts.
    • Previously: Amazon in line to sell e-books to NYC schools (Apr. 19 2016)
    | Thu, Apr. 21, 2:34 AM | 11 Comments
  • Tue, Apr. 19, 3:14 PM
    • Amazon.com (AMZN -1.5%) this afternoon has juiced its Web Services offering with a number of new services designed to ease migration of data.
    • The company added two new low-cost options to its Elastic Block Store, targeting cost-effective performance for throughput-intensive workloads. And its Application Discovery Service is set to help customers determine what they're already running internally to ease switching to the cloud, as well as sort out critical dependencies.
    • Automated security assessment tool Amazon Inspector has finished a preview phase and is available to all customers.
    • And it's launched a bigger version (80 TB) of its previously 50 TB "Snowball" hardware appliance -- because "Never overestimate the bandwidth of a UPS truck," says Amazon's Matt Wood.
    • Now read Amazon Levels Playing Field With Netflix »
    | Tue, Apr. 19, 3:14 PM | 6 Comments
  • Tue, Apr. 19, 3:38 AM
    • Technology companies have long coveted classrooms, attempting over the years to persuade schools to adopt their devices and specialized software, with mixed success.
    • Amazon (NASDAQ:AMZN) this week will find out whether it will be accepted into the nation's largest school district.
    • The online retailer is in line to be awarded a contract to sell e-books to New York City schools worth as much as $64.5M over five years.
    | Tue, Apr. 19, 3:38 AM | 1 Comment
  • Mon, Apr. 18, 7:34 PM
    • Credit Suisse reiterated bullish takes on a few members of the FANG trade today (now the FAA trade?): Facebook (FB +0.7%), Alphabet (GOOG +1%, GOOGL +1%) and Amazon.com (AMZN +1.5%) all got re-upped as its top large-cap sector picks, and it gave one a target bump.
    • All three hold an Outperform rating from the firm. It's lifted its price target on Facebook to $142 (implying 28.6% upside from today); on GOOGL, its target is $920 (16.8% upside) and on Amazon, it holds a target of $800 (25.9% upside).
    • The companies are spending heavily as they enter new investment cycles, analyst Stephen Ju says, which has spurred some investor concerns but bodes well for revenue generation. Amazon and Google will be responding to demand with spending, he writes, "and hence we are happy to be wrong (too low) in our capex projections as this would mean that our revenue projections are also too low."
    • Alphabet/Google is narrowing the "monetization gap" between mobile and desktop by pricing mobile up over the long term, he says. At Amazon, unearned revenues may be up as the Prime subscriber growth may have accelerated over the last two quarters.
    • As for Facebook: "We submit that there are two more Facebooks lurking inside Facebook as Messenger 'chat feed' evolves to a news feed over time and ultimately opens the way for native ads."
    • Now read Chatbots And The Future Of Facebook Messenger »
    | Mon, Apr. 18, 7:34 PM | 31 Comments
  • Mon, Apr. 18, 7:43 AM
    • Piper Jaffray recently completed its semi-annual teen survey. The firm asked high school students how they currently rent movies and how they expect to rent movies in the future.
    • Key takeaways: 1. 61% indicated they use download/streaming to rent movies today. 2. Netflix (NASDAQ:NFLX) was the most popular service for renting movies currently, with 64%, well ahead of competing services from Amazon (NASDAQ:AMZN) and Hulu (Comcast, Fox, Disney) at 4% and 3%, respectively. 3. Netflix topped the list of movie services that teens expect to use the most over the next five years. Its biggest streaming competitors Amazon and Hulu garnered 6% and 5% respectively, with Redbox (NASDAQ:OUTR) slipping to 8% from 10% for fall-15.
    • "We are confident in continued domestic growth for Netflix given popularity in the teen demographic. Maintain Overweight and $122 price target." Implied upside 9%.
    • Netflix reports today after the close.
    • Now read Netflix's Pie In The Sky Valuation »
    | Mon, Apr. 18, 7:43 AM | 32 Comments
  • Sun, Apr. 17, 10:13 PM
    • Amazon.com (NASDAQ:AMZN) is going monthly with a stand-alone option for its Prime Video -- amping the competitive stakes with Netflix (NASDAQ:NFLX) to a high pitch, not to mention Hulu.
    • Prime Video was previously offered as a value-add to Amazon's $99/year Prime membership, which offers free two-day shipping on products. Now, the retail giant is undercutting Netflix prices with plans to offer customers a separate purchase for $8.99/month, a dollar less than Netflix's recently raised price for its most popular plan.
    • Along with stand-alone video, Amazon is also offering full Prime membership on a monthly basis, rather than the annual payment. Customers can join in for $10.99/month with no annual commitment, meaning they can still save 25% by paying for the full year at once.
    • Hulu -- co-owned by Disney (NYSE:DIS), Comcast (NASDAQ:CMCSA) and Fox (FOX, FOXA) -- offers its limited commercials plan for $7.99/month, and a no-commercials plan for $11.99/month.
    • Now read Netflix's Pie In The Sky Valuation »
    | Sun, Apr. 17, 10:13 PM | 70 Comments
Company Description
Amazon.com, Inc. provides online retail shopping services. It provides services to four primary customer sets: consumers, sellers, enterprises, and content creators. The company also provides other marketing and promotional services, such as online advertising and co-branded credit card... More
Sector: Technology
Country: United States