Thu, Jan. 22, 11:44 AM
- Amazon (NASDAQ:AMZN) has surged above $308 after eBay reported its Marketplaces revenue and GMV respectively rose just 1% and 2% Y/Y in Q4, a sign of further share loss to Amazon and other rivals. The Nasdaq is up 0.9%.
- eBay also provided light Q1 and full-year guidance, and announced it's laying off 7% of its workforce. The company blamed its Q4 performance on SEO (Google algorithm) changes, a strong dollar, and a password reset requirement following last spring's security breach.
- Amazon's Q4 report arrives on Jan. 29. Shares jumped yesterday following a Carl Icahn rumor that was quickly shot down by CNBC.
Wed, Jan. 21, 11:29 AM
- Amazon (AMZN +2.7%) is the latest company to spike higher on a rumor Carl Icahn has taken a stake. Shares have pared their gains after CNBC's Scott Wapner reported (citing sources) Icahn has no position in Amazon.
- Twitter popped in the wake of similar rumors a couple weeks ago. Icahn later denied having a stake in the company.
Tue, Jan. 13, 11:49 AM
- In a note titled "The Sun Will Come Out Tomorrow," Citi's Mark May has upgraded Amazon (NASDAQ:AMZN) to Buy, and upped his target by $29 to $354.
- May: "At current price levels, we estimate Amazon’s retail business is trading at the traditional retailer average of 0.7x out-year GMV (this group includes WMT, TGT and COST), while its AWS/Other business is trading ~5.6x 2015 revenue versus its comp-set average of 6.8x." He adds the retail business is expected to grow 15% this year vs. 4% industry growth, and that AWS/Other is expected to grow 35%.
- Regarding Amazon's bottom line, May observes CSOI margins were ~6% (above that of traditional retailers) around 2011, before the company stepped up AWS and international investments. He also notes gross profit (doesn't account for fulfillment spend, which has been growing rapidly) has outpaced revenue growth each of the last four years. "We see the company expanding EBITDA margin to its highest level in >10 years."
- Citi downgraded Amazon on July 22, when shares were at $360. Today's upgrade, along with a market rally, has propelled shares back above $300.
Dec. 16, 2014, 3:59 PM
- Internet stocks have posted substantial losses after a morning market rally proved short-lived. The Nasdaq is down 1.2%.
- In addition to Google, which has made new 52-week lows, Facebook (FB -3%), Twitter (TWTR -4.7%), Amazon (AMZN -3.5%), and Netflix (NFLX -3.2%) are among the underperforming names. Other decliners: Z -5.5%. TRLA -5.4%. MELI -5.4%. ZNGA -4.9%. ZU -3.2%. ANGI -3.4%.
- The selloff comes even though Goldman upgraded its rating for the sector to Attractive from Neutral today. The firm noted Internet stocks are collectively down 16% over the last 12 months (maybe 18%-19% after today), and that forward EV/EBITDA multiples have contracted significantly.
- Internet/social media ETFs: FDN, PNQI, SOCL
Nov. 28, 2014, 12:27 PM
- IBM estimates U.S. Thanksgiving online sales rose 14% Y/Y, aided by a 29.8% increase in sales from department store sites. Mobile respectively accounted for 32.3% and 52.1% of sales and site traffic, up from 25.8% and 42.6% a year ago. Average order value fell by $7 to $125.
- ChannelAdvisor (ECOM -0.9%) reports its clients' Thanksgiving same-store sales rose 20.1%. Their Amazon (AMZN +1.7%) same-store sales rose 25.9%, but their eBay (EBAY +0.8%) sales fell 3%. Notably, all other marketplaces collectively saw 110% growth - retailers such as Best Buy and Sears have been adding marketplaces to complement their direct sales.
- For reference, ChannelAdvisor reported 32.4% and 4.4% Amazon and eBay October same-store growth, respectively. eBay has been losing marketplace share to Amazon for some time, and was hit this summer by Google algorithm changes and a security breach.
- Early reports for Black Friday sales have generally been positive.
Nov. 14, 2014, 12:48 PM
- Amazon (NASDAQ:AMZN) has rallied to its highest levels since mid-September, and is now up 17% from an Oct. 24 low of $284 (set in the wake of Amazon's Q3 miss and light Q4 guidance). Volume (5.1M shares) is already above a 3-month average of 4.5M.
- The rally comes in the wake of this morning's October retail sales report. Excluding auto, total retail sales rose 0.3% M/M, slightly below a 0.4% consensus. Traditional department stores saw a 0.3% M/M and 3.5% Y/Y drop.
- Earlier this week, ChannelAdvisor (ECOM -0.9%) reported its clients saw 32.7% Y/Y Amazon same-store sales growth in October. That's down from September's 37.9%, but still over 2x U.S. e-commerce growth.
Oct. 24, 2014, 9:15 AM
Oct. 23, 2014, 5:42 PM
Oct. 23, 2014, 4:17 PM
- Amazon (NASDAQ:AMZN) reports another unprofitable quarter amid strong growth and a flurry of new device releases.
- North American revenue +24.9% Y/Y to $10.301B
- International revenue +13.6% to $7.712B.
- Media revenue +4.2% to $5.244B
- Other revenue +36.7% to $1.382B.
- Fulfillment spend +29.9% to $2.643B.
- Operating cash flow +15% to $5.71B.
- Guidance: The company sees revenue of $27.3B-$30.3B in Q4 vs. $30.9B consensus. A Q4 operating loss of between -$570M and -$430M is expected.
- AMZN -8.5% AH.
Oct. 15, 2014, 4:45 PM
- Internet stocks are selling off in AH trading as Netflix craters in response to its light Q3 subscriber adds and disappointing Q4 guidance, and eBay slumps after providing weak Q4 guidance and reporting only 6% Y/Y Q3 Marketplaces growth.
- Google (NASDAQ:GOOG) -1.6% AH. Facebook (NASDAQ:FB) -1.5%. Amazon (AMZN - taking share from eBay) -2.8%. Twitter (NYSE:TWTR) -1.9%. LinkedIn (NYSE:LNKD) -4.2%. YELP -1.4%.
- Internet ETFs: FDN, PNQI, SOCL
Sep. 15, 2014, 5:38 PM
Sep. 10, 2014, 9:23 AM
- Same Store Sales for Amazon (NASDAQ:AMZN) rose 45.1% in August, up from 40.4% in July, and continuing a trend of increasing the Y/Y growth rate every month in 2014.
- Continuing to lose share, eBay (NASDAQ:EBAY) SSS rose just 5.9% in August, down from 9.7% in July, and the weakest result for the company since February 2011. Looking further into the detail, eBay auctions fell 11% Y/Y, eBay fixed price rose 6.8% (down from 12.8% in July), and eBay Motors rose 8.4%.
- Full report
- AMZN +1.7%, EBAY -2.7% premarket
- Previously: eBay downgraded over Apple Pay
Aug. 13, 2014, 10:37 AM
- ChannelAdvisor (ECOM +0.4%) clients saw a hefty 40.4% Y/Y increase in their July Amazon (AMZN +3.1%) same-store sales. That's up from June's 34.4%, and is easily the highest rate seen in the last 12 months. 38.2% of tracked Amazon GMV was fulfilled by Amazon, up from 29.8% a year ago.
- On the other hand, eBay's (EBAY -1.1%) same-store growth fell to 9.7% from June's 12.3% Auctions -8.2%, fixed-price +12.8%, Motors +8%. ChannelAdvisor sees the numbers as a sign eBay "continues to face headwinds" from Google algorithm changes and a May data breach.
- Search ad-driven same-store sales, which are dominated by Google (GOOG +1.3%) AdWords, fell to 7% from June's 20.4%. While average order value (AOV) grew 6% and conversion rates 8%, mobile growth led ad prices (cost per click) to fall 7%.
- Google Shopping/product listing ads (previous) continue to perform well: They saw 40.8% same-store growth, down a bit from June's 47.8%. Conversion rates fell 9.5%, but AOV grew 8.9% ChannelAdvisor thinks mobile is hurting conversion rates, and that Google is "counteracting that by showing higher-priced items."
- Amazon also rallied following ChannelAdvisor's June numbers. Shares tumbled a couple weeks later due to the bottom-line concerns caused by Amazon's Q2 report.
Jul. 25, 2014, 9:13 AM
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. 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.
AMZN vs. ETF Alternatives
Amazon.com 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 offerselectronic devices like Kindle e-readers and Fire tablets.
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