Fri, Aug. 12, 8:49 AM
- Retail sales came in flat for July with weakness in grocery stores, restaurants, and department stores standing out. The U.S. economy had produced three straight months of positive retail sales growth before the disappointment in July.
- Once again, the nonstore retailers category (primarily e-commerce) led growth with a 1.3% M/M and 14.1% Y/Y gain in July. Sales at health and personal care stores were also solid with a 7.8% Y/Y rise.
- Retail sales in June were revised to +0.9% from +0.7% in a positive development for the sector.
- Retail Sales report (.pdf)
- The S&P Retail ETF (NYSEARCA:XRT) is up 0.64% premarket to $45.55 as it looks to extend on yesterday's gain.
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE, JHMS, IBUY, CNSF, CNDF, JHMC.
- Related stocks: WMT, TGT, COST, SPLS, HD, LOW, AMZN.
Thu, Aug. 11, 8:12 PM
- A new report is giving ammunition to "cord-haver" investors in an increasing high-profile TV industry debate.
- SNL Kagan sees a moderation in the cord-cutting trend, noting the "rate of decline stayed about constant versus the past couple of quarters."
- Meanwhile, at least some key companies are responding to the change: Even as pay TV bundle customers decline, they can see big new residential revenues from upticks in broadband Internet subscriptions.
- The firm forecasts broadband subscriptions will swell by more than 8M over 10 years, hitting 71M (ending up at 1.6 times the video sub numbers). Meanwhile, basic video subscriptions are expected to drop by annual compounded growth rate of 1.5% (to 45.4M by 2026), slower than last year's expected 1.7% decline, SNL Kagan says.
- It expects residential revenues to rise from $108.38B this year to $117.7B in 2016, and contributions from commercial services to push industry revenue from $130.57B today to $140.99B in 2026.
- On the other hand, Jan Dawson at Jackdaw Research warns that more people are cord-cutting than you think, pointing to six straight quarters of Y/Y declines in pay TV subs.
- "I’ve lost track of how many headlines I’ve seen over the last couple of years which posit that cord-cutting is somehow slowing down off the back of a small number of providers’ quarterly results," Dawson says, mainly due to observers focusing on quarterly net adds rather than annual changes, and looking at too small a sample size.
- Cable players have done well lately, but at the expense of telcos -- and even in cable, it's an example of the rich getting richer, with smaller players suffering. And Dish Network (NASDAQ:DISH) is seeing worsening results despite its creation of streaming service Sling TV.
- Cord/no-cord players: CMCSA, CHTR, OTCPK:ATCEY, T, VZ, DISH, FTR, CTL, NFLX, DIS, FOX, FOXA, TWX, CNSL, AMZN, WIN, CCOI
Mon, Aug. 8, 3:17 AM
- Japan's antitrust regulator has raided the office of Amazon Japan (NASDAQ:AMZN) on suspicion of pressuring retailers to offer products with more favorable conditions than rival sites, sources told the Nikkei, but didn't say when the raid took place.
- A Fair Trade Commission spokesman said he could not confirm the report but added: "I won't say the contents are incorrect."
Fri, Aug. 5, 2:03 AM
- Amazon (NASDAQ:AMZN) will reveal its first branded cargo plane, Amazon One, at Seattle's SeaFair Air Show today, emblazoned with "Amazon" on its belly, "Prime Air" on its sides and the Amazon smile logo on its tail.
- The freighter jet is among a fleet of 40 leased from Atlas (NASDAQ:AAWW) and Air Transport Services Group (NASDAQ:ATSG) to improve a supply chain straining to keep pace with the retailer’s growing sales and swelling ranks of Prime members.
Thu, Aug. 4, 2:40 PM
- Amazon (AMZN +0.7%) adds a medicine and vitamin-monitoring device made by AESOP-WORKS, a coffee-brewing system made by Behmor, robotic vacuums made by Neato Robotics, dryers and dishwashers made by GE Appliances and other new items to its Dash Replenishment Service.
- The Hershey Company and Vivint are additionally joining the program, with more details forthcoming.
- The move continues an IoT push by Amazon to provide consumers with a convenient and effortless way to have ancillary supplies automatically re-ordered for frequently used devices.
- The company revealed the service last year around the same time it began rolling out Dash Buttons and has added a number of brands to its portfolio since.
Mon, Aug. 1, 11:34 AM
- Amazon's (AMZN +1.3%) market capitalization is currently around $366B while Exxon Mobil's (NYSE:XOM) has fallen to $354B.
- Amazon has recently unseated Berkshire Hathaway (BRK.B, BRK.A) for the fifth spot but its shares continue to climb since posting impressive Q2 results and is firmly making its way up the list.
- Apple (AAPL), Alphabet (GOOG, GOOGL) and Microsoft (NASDAQ:MSFT) currently represent the top three with $567B, $564B and $445B market capitalizations, respectively.
Fri, Jul. 29, 9:30 AM
- Last week, Goldman Sachs set a $900 price target (up from $790) on the company.
- Today, following yesterday's Q2 report, Goldman Sachs analyst Heath Terry upped his Amazon (AMZN +0.5%) target again, this time to $920. He maintains a Buy rating.
- Terry accurately forecasted the 58% Y/Y AWS revenue growth the company realized this quarter.
- He cites Amazon's continued investment in its AWS business, particularly in the infrastructure supporting it. Nine Availability Zones are expected to be added over the upcoming year, which Terry sees as reducing capacity constraints and increasing revenue growth. Though he additionally notes these efforts may constrain short term margins.
- Transcript of yesterday's earnings call.
Fri, Jul. 29, 9:23 AM
- Household spending by consumers increased 4.2% in Q2 to mark the best pace for the category since late in 2014.
- The strong read on consumer spending contrasts with the tightening by businesses amid Brexit fears, F/X pain, and political jitters.
- Retail ETFs trail broad stock market averages on the year after a May swoon, although most of the damage has been from the mall sector. Companies with a thriving e-commerce business and/or high mix of U.S. sales have held up.
- Despite the painful headline Q2 GPD miss today, the underlying resiliency shown by consumers could bode well for a variety of retailers such as Amazon (NASDAQ:AMZN), Target (NYSE:TGT), Wal-Mart (NYSE:WMT), Costco (NASDAQ:COST), Kroger (NYSE:KR), Lululemon (NASDAQ:LULU), Dollar General (NYSE:DG), PriceSmart (NASDAQ:PSMT), and Williams-Sonoma (NYSE:WSM) to name a few (add your own ideas in the comments).
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE, JHMS, IBUY, CNSF, CNDF, JHMC
Thu, Jul. 28, 7:05 PM
- Amazon (NASDAQ:AMZN) has posted Q2 results with AWS net sales of $2.886B, up from $2.566B last quarter and $1.824B for the year ago period.
- The company's cloud computing division has realized 49%, 81%, 78%, 69%, 64% and now 58% Y/Y growth in each quarter respectively for the time frame beginning Q1 2015.
- Though growth has slowed relative to recent quarters, sustaining a more than 50% level is nonetheless impressive.
- AWS this quarter was elected by Salesforce as its preferred public cloud infrastructure provider. Salesforce will expand use of Amazon's cloud solutions to its Service Cloud, Sales Cloud, App Cloud, Community Cloud and Analytics Cloud core services in an international infrastructure development effort. Initiatives like this have helped Amazon to continue progressing in the fast-moving and increasingly competitive cloud market.
Thu, Jul. 28, 5:06 PM
- Amazon (NASDAQ:AMZN) posts better-than-expected results, highlighted by 31% Y/Y net sales growth, a 42% trailing twelve-month increase in operating cash flow and net income of $857M vs. $92M Y/Y.
- In the release, Amazon CEO Jeff Bezos in particular noted the company's recent initiatives in India.
- Other highlights include the company's biggest day ever and Amazon Studios receiving 16 Emmy nominations for its originally produced content.
- The company provides Q3 net sales guidance of $31B-$33.5B (projected 22%-32% Y/Y growth) and operating income guidance of $50M-$650M vs. $406M Y/Y.
- Shares are trading up approximately 2% on the results.
- Conference call
- Press release
Thu, Jul. 28, 4:02 PM
Wed, Jul. 27, 5:35 PM
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Tue, Jul. 26, 10:23 AM
- Amazon's (AMZN +0.1%) Prime service will initially cost 499 INR per year (approximately $7.50) and eventually go up to 999 INR (approximately $14.80).
- Free and discounted delivery will be featured, with options varying depending on location.
- Prime Video appears to be currently unavailable in the country, but is reported to be forthcoming.
- This launch comes on Amazon's recent push to invest heavily in the South Asian country with a population of 1.25 billion.
Tue, Jul. 26, 2:44 AM
- Amazon (NASDAQ:AMZN) has partnered with the British government to significantly expand drone testing, a move that could let the devices deliver packages to British homes far earlier than in the U.S.
- The agreement allows Amazon to pilot its vehicles without a direct line of sight, trial its "sense and avoid" technology and permits operators to fly multiple drones at one time.
Mon, Jul. 25, 12:09 PM
- Youssef Squali at Cantor Fitzgerald forecasts +26% Y/Y revenue growth attributed to improved margins and growing scale in Amazon's (AMZN -0.6%) e-commerce, third-party seller and AWS businesses.
- The firm projects +25% growth in North American revenue and +19% internationally in addition to +57% in AWS revenue growth Y/Y.
- Maintains Buy rating and $800 price target (current price of $742.01).
- Wedbush Securities restates an Outperform rating and raises its price target to $835 up from $775 citing increased gross and operating margins in AWS, and Prime membership growth.
- Last week, Goldman Sachs set a $900 price target on the company.
- Amazon will report Q2 results on Thursday.
Sat, Jul. 23, 1:08 PM
- 7-Eleven and drone delivery service upstart Flirtey announce that they have completed the first fully autonomous drone delivery to a customer's residence. The pair says the development will help advance research toward integrating drones into the National Airspace System.
- The drone delivery in the Reno area, which marked the first time a U.S. customer has received a package to their home via drone, included Slurpee drinks, a chicken sandwich, donuts, hot coffee, and candy.
- Looking ahead, the two companies have plans to expand drone delivery tests and work closely together, according to a top 7-Eleven exec.
- Drone watch: While there's some speculation on the ways that companies such as Amazon (NASDAQ:AMZN), Wal-Mart (NYSE:WMT), Walgreens Boots Alliance (NASDAQ:WBA), and Domino's Pizza (NYSE:DPZ) could use drone delivery, many industry watchers think emergency conditions (flood/forest fire/earthquake/medical) or niche situations (oil rigs/barrier islands/inaccessible roads) are the most likely scenarios for widespread drone action. Earlier this year, an article in the MIT Technology Review speculated that an intermediary dropping off point out such as the local Starbucks (NASDAQ:SBUX) store could be utilized instead of working out all the problems of home delivery.
- Related (directly and tangentially) stocks: AMBA, AVAV, DJI, OTCQX:DRNE, HON, INVN, IXYS, GPRO, TRMB, FDX, UPS, TGT.