More on Amazon: Gross margin +260 bps Y/Y to 26.6% (it rose 340 bps Y/Y in Q4 to 24.1%). North America sales growth up to 26% Y/Y in Q1 (23% in Q4), international down to +16% (21% in Q4), hurt by forex. 58/42 split between NA and international sales. Media sales +7% (+8% in Q4) and 31% of total, electronics/other merchandise +28% (same as Q4) and 64% of total. "Other" NA revenue (mostly AWS) +64% to $750M. Fulfillment spend +39% (+36% in Q4), marketing +32% (+43% in Q4), technology/content +46% (+56% in Q4) - all 3 rates are still soundly above rev. growth. Free cash flow for last 12 months is $1.58B (exc. HQ purchase). AMZN +2.2% AH. (PR) [View news story]
The real cost of sales should include Fulfillment and Technology & Content. So legitimate gross profit is 6.8% in Q1-13 vs 7.0% in Q1-12. Put all the lipstick on the pig you want to, it still means gross margins were down 20 basis points. Of course I learned my math many years ago before everyone started making numbers look however they want them to. AMZN's margins are up just like there is no inflation.
An Amazon (AMZN +1.7%) smartphone with a 4.7" display is on the way, sources tell Digitimes, which has been fanning the rumor mill for this subject for some time. Whereas the site reported on March 11 the phone's launch had been pushed back from Q2 due to manufacturing issues, it now says a launch may or may not happen in the quarter, depending on Foxconn's progress. [View news story]
If Amazon Is So Overvalued Why Does Google Want To Be Like It? [View article]
Money Investor, You might not drive to a store to save $100 on a $1,500 purchase. But I will bet that you are not an average buyer. I dare say that 90+% of the folks out there would save the $100. I will also bet that very few people have ever purchased something from Amazon when the price was $100 more than they could buy it elsewhere. Common sense says that if they did not sell primarily on price, they would raise prices and make money!!
If Amazon Is So Overvalued Why Does Google Want To Be Like It? [View article]
Anyone can have great customer service if they do not care about making money. Anyone can also grow sales if they do not care about making money. Anyone can grow sales if they can underprice competition by 7% because they do not have to charge sales tax. I guess you also liked Montgomery Wards.
FelCor Lodging Trust (FCH): Q4 EPS of -$0.01 beats by $0.06. Revenue of $222.2M (+6% Y/Y) beats by $7M. (PR) [View news story]
The actual loss for q4 was .83 ps and the actual loss from continuitng operations was 1.06ps. For the year it was a loss of 1.35 and 1.82. Common equity is 84mm negative. That's right, negative! And the mid point of their 2013 net loss after pfd div is 105mm. It is amazing how the financial media try to turn chicken dodo into chicken salad!
ChannelAdvisor's January data could be helping Amazon (AMZN +2.8%) rally: the firm's clients saw a 34.3% Y/Y increase in Amazon same-store sales, up from 29.8% in December. eBay's (EBAY +0.2%) growth came in at 18.8%, down from December's 22.2%. In a positive for Google (GOOG +0.1%), search ad-driven sales grew 1% after falling 18% in December thanks to a migration to Google Shopping. Shopping engine sales (inc. Google Shopping) rose 7.9%, down from December's 15.5%. SA contributor Paulo Santos, a long-time Amazon bear, argues Amazon benefited from favorable comps. [View news story]
I am sick of hearing about sales. Show me the profits!!
There's an investing lesson in here somewhere. Harris Interactive's 2013 Reputation Quotient survey shows Amazon (AMZN) moving past Apple as the country's reputation leader. Bank of America (BAC) retains a spot in the bottom 5 (along with HAL, GS, and AIG), but enjoyed the largest reputation rebound in 2012. Maybe of most interest are those dropping off the list of visible companies, including: UPS, KSS, and GIS. [View news story]
How can folks admire a company built on evasion of sales taxes?
Amazon's Growing Pains: Peter Lynch Would Say It's Time To Sell This Fast Grower [View article]
I can't believe anyone would think amzn would have grown sales at the rate they have, had their prices been 7% higher. That is the sales tax advantage they have had in the past. The great sales growth is because of that advantage. Now that it is dissappearing, sales will grow much less and they have no idea how to make profits. Argue all you want but these are just facts.
How fast do you think sales would have grown in the last 10 years if amzn prices had been 7% higher? My guess is not very much. That is about the advantage they have had from no sales tax.
More on Amazon's (AMZN) Q4: The company swung back from its Q3 loss as North America sales rose 23% Y/Y to $12.175B and International sales gained 21% to reach $9.093B. Growth in the company's Electronics segment outpaced Media segment sales. Free cash flow decreased 81% to $395M for the trailing twelve month period compared to a year ago with real estate outlays factoring in. For Q1, the company sees $15.0B-$16.6B in revenue and expects profit to fall in a range of -$285M to $65M. A conference call is scheduled for 5:00 EST. AMZN changes direction, now +3.2% AH. (PR) [View news story]
Unless my data is wrong, this thing has traded over $1 billion in after hours. Manipulated by da boyz since they can not get out without this thing going to real value of about 50.
More on Amazon's (AMZN) Q4: The company swung back from its Q3 loss as North America sales rose 23% Y/Y to $12.175B and International sales gained 21% to reach $9.093B. Growth in the company's Electronics segment outpaced Media segment sales. Free cash flow decreased 81% to $395M for the trailing twelve month period compared to a year ago with real estate outlays factoring in. For Q1, the company sees $15.0B-$16.6B in revenue and expects profit to fall in a range of -$285M to $65M. A conference call is scheduled for 5:00 EST. AMZN changes direction, now +3.2% AH. (PR) [View news story]
Shorts are crying now but it will end in tears for the longs. Just don't know when.
UPS (UPS -0.4%) releases its shipping rates for 2013 with an increase of 4.5% in all UPS Air services and a 4.9% hike for UPS Ground services on tap. One of the first questions traders will ask is if Amazon (AMZN +2%) will take the hit to margins or find a way to pass on the additional costs. [View news story]
They will take the hit since they care nothing about making money, only sales increases.
FelCor Lodging Trust (FCH): Q3 FFO of $0.08 in-line. Revenue of $236.2M (+5.8% Y/Y) misses by $3M. (PR) [View news story]
FelCor's problem is that the q3 loss essentially eliminated the common equity which is now down to $18.4 million, or $.15 per share. The past few years has produced a big increase in the number of shares outstanding while the company's business is shrinking from the sales of hotels.
More on Amazon: Gross margin +260 bps Y/Y to 26.6% (it rose 340 bps Y/Y in Q4 to 24.1%). North America sales growth up to 26% Y/Y in Q1 (23% in Q4), international down to +16% (21% in Q4), hurt by forex. 58/42 split between NA and international sales. Media sales +7% (+8% in Q4) and 31% of total, electronics/other merchandise +28% (same as Q4) and 64% of total. "Other" NA revenue (mostly AWS) +64% to $750M. Fulfillment spend +39% (+36% in Q4), marketing +32% (+43% in Q4), technology/content +46% (+56% in Q4) - all 3 rates are still soundly above rev. growth. Free cash flow for last 12 months is $1.58B (exc. HQ purchase). AMZN +2.2% AH. (PR) [View news story]
An Amazon (AMZN +1.7%) smartphone with a 4.7" display is on the way, sources tell Digitimes, which has been fanning the rumor mill for this subject for some time. Whereas the site reported on March 11 the phone's launch had been pushed back from Q2 due to manufacturing issues, it now says a launch may or may not happen in the quarter, depending on Foxconn's progress. [View news story]
If Amazon Is So Overvalued Why Does Google Want To Be Like It? [View article]
If Amazon Is So Overvalued Why Does Google Want To Be Like It? [View article]
FelCor Lodging Trust (FCH): Q4 EPS of -$0.01 beats by $0.06. Revenue of $222.2M (+6% Y/Y) beats by $7M. (PR) [View news story]
ChannelAdvisor's January data could be helping Amazon (AMZN +2.8%) rally: the firm's clients saw a 34.3% Y/Y increase in Amazon same-store sales, up from 29.8% in December. eBay's (EBAY +0.2%) growth came in at 18.8%, down from December's 22.2%. In a positive for Google (GOOG +0.1%), search ad-driven sales grew 1% after falling 18% in December thanks to a migration to Google Shopping. Shopping engine sales (inc. Google Shopping) rose 7.9%, down from December's 15.5%. SA contributor Paulo Santos, a long-time Amazon bear, argues Amazon benefited from favorable comps. [View news story]
There's an investing lesson in here somewhere. Harris Interactive's 2013 Reputation Quotient survey shows Amazon (AMZN) moving past Apple as the country's reputation leader. Bank of America (BAC) retains a spot in the bottom 5 (along with HAL, GS, and AIG), but enjoyed the largest reputation rebound in 2012. Maybe of most interest are those dropping off the list of visible companies, including: UPS, KSS, and GIS. [View news story]
Amazon's Growing Pains: Peter Lynch Would Say It's Time To Sell This Fast Grower [View article]
Amazon's Margin Myth: Sleight Of Hand [View article]
Amazon's Growth Is Shutting Down [View article]
More on Amazon's (AMZN) Q4: The company swung back from its Q3 loss as North America sales rose 23% Y/Y to $12.175B and International sales gained 21% to reach $9.093B. Growth in the company's Electronics segment outpaced Media segment sales. Free cash flow decreased 81% to $395M for the trailing twelve month period compared to a year ago with real estate outlays factoring in. For Q1, the company sees $15.0B-$16.6B in revenue and expects profit to fall in a range of -$285M to $65M. A conference call is scheduled for 5:00 EST. AMZN changes direction, now +3.2% AH. (PR) [View news story]
More on Amazon's (AMZN) Q4: The company swung back from its Q3 loss as North America sales rose 23% Y/Y to $12.175B and International sales gained 21% to reach $9.093B. Growth in the company's Electronics segment outpaced Media segment sales. Free cash flow decreased 81% to $395M for the trailing twelve month period compared to a year ago with real estate outlays factoring in. For Q1, the company sees $15.0B-$16.6B in revenue and expects profit to fall in a range of -$285M to $65M. A conference call is scheduled for 5:00 EST. AMZN changes direction, now +3.2% AH. (PR) [View news story]
Amazon (AMZN): Q4 EPS of $0.21 misses by $0.07. Revenue of $21.27B (+27% Y/Y) misses by $101M. Shares -6.3% AH. (PR) [View news story]
UPS (UPS -0.4%) releases its shipping rates for 2013 with an increase of 4.5% in all UPS Air services and a 4.9% hike for UPS Ground services on tap. One of the first questions traders will ask is if Amazon (AMZN +2%) will take the hit to margins or find a way to pass on the additional costs. [View news story]
FelCor Lodging Trust (FCH): Q3 FFO of $0.08 in-line. Revenue of $236.2M (+5.8% Y/Y) misses by $3M. (PR) [View news story]