Seeking Alpha, Inc. (AMZN)

  • Jul. 25, 2014, 7:20 AM
    • Amazon (NASDAQ:AMZN), says Cowen's John Blackledge maintaining his Outperform rating but lowering the price target to $390 from $410, "delivered a mixed report with units stabilizing and a topline result and guide that met expectations, but the profitability disappointed. Also, AWS price cuts put an unexpected dent in growth."
    • Also continuing with a Buy rating, but lowering the price target is BofA's Justin Post who cuts to $400 from $420, noting the Q3 profit outlook as coming in well below expectations.
    • Baird and Evercore also cut price targets, and B. Riley pulls its Buy rating, downgrading to Neutral.
    • Shares -9.8% premarket
    • Previous Amazon earnings coverage
    | Jul. 25, 2014, 7:20 AM | 8 Comments
  • Jul. 24, 2014, 7:35 PM
    • "We have a long-term view ... We’re not trying to optimize for short term profits," states Amazon (NASDAQ:AMZN) CFO Tom Szkutak on the Q2 CC, repeating a mantra his company has uttered in some form for years. Judging by the reaction to the company's EPS miss and guidance for a sizable Q3 op. loss, investor patience seems to be wearing thin.
    • Szkutak admitted Amazon Web Services' near-term growth has been hurt by an ongoing cloud infrastructure price war with Microsoft and Google - while North American "Other" revenue was up 38% Y/Y, it fell 3% Q/Q, and Y/Y growth decelerated from Q1's 60%.
    • He also suggests Amazon's Q3 bottom line will be pressured by a "significant" increase in video content spend. The company plans to spend $100M on original programming alone, as it tries to counter Netflix's big content investments and keep Prime renewal rates high.
    • On the bright side, Szkutak says Prime subscriptions are still growing well following this year's $20 price hike, and that Q2 subscriber adds topped year-ago levels (no specific numbers, as usual). CIRP survey data appears to back him up.
    • Regarding China, he states Amazon has "a lot of interesting things" planned, and will continue investing in the Middle Kingdom. Alibaba remains the Chinese e-commerce market's 800-lb. gorilla.
    • Q2 results, guidance/details.
    | Jul. 24, 2014, 7:35 PM | 29 Comments
  • Jul. 24, 2014, 4:38 PM
    • Amazon (NASDAQ:AMZN) expects Q3 revenue of $19.7B-$21.5B (+15%-26% Y/Y) vs. a $20.8B consensus. Op. loss is expected to total $410M-$810M, up from just $25M a year earlier.
    • North America revenue rose 26% Y/Y in Q2 to $12B, and international revenue 18% to $7.3B. The growth rates are even with Q1 levels. North America had a $438M segment op. profit, and international a $34M segment op. loss.
    • Media revenue +10% Y/Y to $4.8B, a pickup from Q1's 8% growth. EGM revenue +27% to $13.3B, an even growth rate with Q1.
    • "Other" revenue +37% to $1.22B, with North American "Other" (dominated by AWS) rising 38% to $1.17B. Amazon claims 90% Y/Y AWS usage growth.
    • Gross margin +210 bps Y/Y to 30.7%. Fulfillment spend +15% to $2.38B, marketing +40% to $943M, tech/content +40% to $2.23B. Free cash flow for the trailing 12 months is $1.04B.
    • Citi's pre-earnings downgrade was well-timed.
    • Q2 results, PR
    • Update: North American "Other" revenue, while up 38% Y/Y, fell 3% Q/Q. Major AWS price cuts (came in the wake of big cuts from Google, and were followed by similar cuts from Microsoft) appear to be the culprit.
    | Jul. 24, 2014, 4:38 PM | 64 Comments
  • Jul. 11, 2014, 11:07 AM
    • ChannelAdvisor (ECOM +6.9%) clients saw a 34.4% Y/Y June increase in their Amazon (AMZN +4.5%) same-store sales. That growth rate is well above May's 28.1%, and is the highest rate seen in the last 12 months.
    • Client eBay (EBAY +2.5%) same-store sales grew 12.3%. That's a little better than May's 11.5%, and suggests the toll taken by a data breach and Google algorithm changes might be abating a bit. Auctions -19%, fixed-price +18.4%, Motors +10.4%.
    • A positive for Google (GOOG +0.9%): Search ad-driven same-store sales rose 20.4%, a big improvement from May's 11.5% and the 2nd-highest level seen in the last 12 months. Cost per click (ad prices) rose 5% to $0.48, conversion rates 6% to 2.81%, and average order value (AOV) 7% to $137.02.
    • ChannelAdvisor notes AOV has historically "been a good indicator of consumer sentiment," and that the appeal of Google AdWords for marketing costlier items remains strong.
    • Meanwhile, Google's product listing ads (PLAs) keep gaining traction as a vehicle for selling cheaper goods. Their same-store sales rose 47.8%, sharply above May's 21.4%. AOV fell 8.7%, but conversion rates rose 10.5%.
    • Deutsche has upgraded ChannelAdvisor to Buy. eBay reports on July 16, Google on the 17th, and Amazon on the 24th.
    | Jul. 11, 2014, 11:07 AM | 15 Comments
  • Jun. 18, 2014, 8:11 AM
    • Amazon (AMZN) Appstore will be available with the launch of the BlackBerry (BBRY) 10.3 operating system this fall.
    • BlackBerry has about 130K apps, but is missing key ones like Pinterest, Netflix, and Groupon, all of which Amazon - with roughly 240K apps - has access to.
    • "I do not have to spend time, energy and money" developing apps Amazon offers, says CEO John Chen. "Given I want to financially turn around the company and focus on the enterprise space, this is perfect for us."
    • BBRY +3.5% premarket
    • Press release
    | Jun. 18, 2014, 8:11 AM | 32 Comments
  • Jun. 10, 2014, 2:36 PM
    • Reuters reports Amazon (AMZN) is set to launch a local services marketplace later in 2014. Angie's List (ANGI) has fallen in response.
    • Angie's already faces competition from eBay's Hire local services marketplace, and has long had to contend with Yelp's free reviews.
    • Previous: Angie's List gains on BofA/Merrill upgrade
    | Jun. 10, 2014, 2:36 PM | 5 Comments
  • May 20, 2014, 10:21 AM
    • Amazon (AMZN +1.7%) trades higher amid a tough day in retail.
    • There's nothing concrete on the table, but some analysts think the company has been stealing some market share from major retailers in Q1 and Q2 as consumers continue to evolve their shopping habits. Staples (SPLS -10%) and Office Depot (ODP -1.5%) come to mind.
    • Starbucks (SBUX -1.3%) CEO Howard Schultz seems to have called the retail slide with his perception that a "seismic shift" toward online and mobile is beyond the tipping point (FBN interview, SBUX conference call).
    | May 20, 2014, 10:21 AM | 3 Comments
  • Apr. 25, 2014, 9:13 AM
    | Apr. 25, 2014, 9:13 AM | 3 Comments
  • Apr. 24, 2014, 4:42 PM
    • Amazon (AMZN) reports a 26% gain in sales in North America to $11.86B and a 18% rise in sales for its international business to $7.88B. Profits increased at a faster rate on the U.S. side.
    • Overall, Amazon's operating margin narrowed 40 bps Y/Y to 1.1%. Once again, management wasn't shy about letting operating expenses grow right along with sales.
    • The company sees revenue of $18.1B-$19.8B in Q2 vs. $19.0B consensus. An operating loss of up to $455M is expected for the period.
    • AMZN +2.1% AH
    | Apr. 24, 2014, 4:42 PM | 6 Comments
  • Apr. 24, 2014, 1:08 PM
    • Re/code reports Amazon (AMZN +3.5%) is paying HBO (TWX +0.1%) $300M+ over three years for its streaming deal. While steep, that figure is less than many estimated, particularly given the cost of Amazon's deals with Viacom and Epix.
    • The Amazon/HBO deal covers many of HBO's biggest hits, including The Sopranos, The Wire, Six Feet Under, Boardwalk Empire, and True Blood (early seasons for the last two). But it doesn't cover HBO's biggest current hit (Game of Thrones).
    • Separtely, Amazon has launched Prime Pantry, its latest salvo at supermarkets and Wal-Mart/Target's grocery ops. Prime Pantry allows Prime subs in the continental U.S. to have up to 45 pounds of groceries shipped for a flat fee of $6. It arrives as Amazon gradually expands the reach of its AmazonFresh same-day delivery service.
    • Shares are up strongly ahead of today's Q1 report. Recent ChannelAdvisor data has been encouraging, a sales tax survey less so.
    | Apr. 24, 2014, 1:08 PM | 1 Comment
  • Apr. 8, 2014, 11:55 AM
    • Rovi (ROVI -9.9%) had previously sued Amazon (AMZN) for infringing five programming guide (IPG) patents via its IMDB site. A federal court has affirmed a non-infringement ruling.
    • Last year, the ITC ruled against Rovi in an IPG-related infringement suit against Netflix and Roku.
    | Apr. 8, 2014, 11:55 AM | Comment!
  • Apr. 8, 2014, 11:34 AM
    • Aided by better weather, ChannelAdvisor (ECOM +4.2%) clients saw a 26.2% Y/Y increase in their Amazon (AMZN +3%) same-store sales in March, up from 23% in February and 14% in January.
    • eBay (EBAY +3.1%) same-store sales rose 17.8% in March vs. 15% in February and 12.7% in January. Fixed-price sales +21.5%, auctions -10%, Motors +19.7%.
    • Search ad-driven same-store sales, dominated by traffic from Google's (GOOG +3%) AdWords, rose 11.2% vs. 4.3% in February and 10.3% in January. Clicks were flat due to a shift towards Google's Product Listing Ads (PLAs). Ad prices fell 7% (soft smartphone ad prices are a likely factor), click rates rose 2%, and average order value rose 5%.
    • PLA-driven same-store sales rose 34.5%. Though that's down from February's 48% and January's 62.8%, ChannelAdvisor chalks it up to "a normal aging of the program," given PLAs only launched in late 2012.
    • Amazon, eBay, and Google are all posting solid gains amid a broader rebound in Internet stocks.
    | Apr. 8, 2014, 11:34 AM | 1 Comment
  • Apr. 2, 2014, 8:44 AM
    • Share of Amazon (AMZN) are on watch today with the company set to host an event in New York City during which a video-streaming device is expected to be introduced.
    • The event begins at 11:00 a.m. ET.
    • What to watch: Though the device (either set-top box or dongle) will pivot around Amazon Prime, the companies which get invited into the box with third-party apps could set the tone for the direction Amazon might be with its streaming model. There's some speculation that standing as a paywall to other content could be part of the Amazon long-term plan.
    • AMZN +0.7% premarket
    | Apr. 2, 2014, 8:44 AM | 1 Comment
  • Mar. 18, 2014, 8:19 AM
    • Oppenheimer boosts its price target on Amazon (AMZN) to $455 from $440.
    • The investment firm has been able to move the stock in the past off of reiterating its long-time bullish thesis.
    • AMZN +0.8% premarket
    | Mar. 18, 2014, 8:19 AM | 9 Comments
  • Mar. 13, 2014, 8:38 AM
    • Amazon (AMZN) confirms in an e-mail to customers that it will bump up the price of Amazon Prime to $99 when their memberships renew.
    • The company notes the 40K movie and TV episodes available to customers through Prime Instant Video, along with the 500K books through the Kindle lending library.
    • It also makes some hay out of the two-day free shipping option for Prime members which now includes 20M items.
    • AMZN +2.1% premarket
    | Mar. 13, 2014, 8:38 AM | 12 Comments
  • Feb. 12, 2014, 9:47 AM
    • Amazon (AMZN -1.6%) has been cut to Neutral by UBS. The firm cites Amazon's soft Q4 top-line performance, and a CIRP survey that indicates only 58% and 24% of Prime subs would respectively renew following price hikes of $20 and $40 (currently under consideration).
    • Intuit (INTU -5%) has been cut to Underweight by Evercore following its FQ2 guidance cut.
    • Veeco (VECO +3.1%) has been upgraded to Outperform by Credit Suisse ahead of its Feb. 19 Q4 report.
    • comScore (SCOR -0.8%) has been upgraded to Outperform by Northland following its Q4 beat.
    • Itron (ITRI +5.5%) has been upgraded to Buy by Needham ahead of today's Q4 report.
    | Feb. 12, 2014, 9:47 AM | 19 Comments
Company Description Inc is an online retailer. The Company sells its products through the website which provides services, such as advertising services and co-branded credit card agreements. It also offers electronic devices like Kindle e-readers and Fire tablets.
Sector: Technology
Country: United States