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426260

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  • Why Amazon Is Still Cheap [View article]
    Justin,
    Agreed - content licensing costs are part of COGS (see excerpt from 2014 10K, p. 48 below):

    "We (Amazon) obtain video and music content (for Prime members)... through licensing agreements that...generally have...fixed payment schedules. When the license fee...is determinable...and available for streaming, we recognize an asset...and a corresponding liability for the amounts owed. We relieve the liability as payments are made and we amortize the asset as cost of sales...over each title’s contractual window of availability,...
    The production costs of internally developed content are capitalized
    only if persuasive evidence exists that the production will generate revenue..., we have generally expensed such costs as incurred."
    Mar 16, 2015. 04:17 PM | Likes Like |Link to Comment
  • Understanding How Amazon's Use Of Capital Leases Overstates Its Cash Flow Metrics [View article]
    Paulo,
    Since Amazon uses restricted stock for compensation which, when issued and vested, frequently does not require employees to actually pay for the stock, unlike when stock options are exercised; how does Amazon's Paid In Capital increase?

    Also, in the "Financing Activities" of the cash flow statement (p.38, 2014 10K), stock-based compensation is included as "Excess tax benefits from stock-based compensation" in the amount of $6M, and no proceeds from the vesting of stock based compensation are shown.

    Thanks.
    Feb 17, 2015. 11:27 AM | Likes Like |Link to Comment
  • Debunking The Latest Amazon.com Myth - Fulfillment Leverage [View article]
    "Amazon Prime membership fees are allocated between product sales and service sales and amortized over the life of the membership according to the estimated delivery of services." - Amazon 10K, 2014, p. 25
    Feb 9, 2015. 03:09 PM | 2 Likes Like |Link to Comment
  • Twitter beats revenue estimates, but Q4 guidance disappoints [View news story]
    Thanks for referencing the GAAP EPS number.

    SeekingAlpha frequently ignores GAAP, even though Twitter's own announcement lists the GAAP loss in the second bullet, prior to the non-GAAP number.
    Oct 27, 2014. 05:26 PM | 1 Like Like |Link to Comment
  • Fresh highs for Apple as payments reports dissected; eBay slips [View news story]
    The payment system will probably use existing credit card accounts, if so, cash back offers should remain in tact. Apple does not appear to be financing the transactions; the banks backing the credit cards would provide the financing.
    Sep 2, 2014. 02:48 PM | 1 Like Like |Link to Comment
  • Bezos' 2014 Amazon investor letter talks AWS, Appstore, 3P growth [View news story]
    According to the Amazon 2013 10K, AWS accounts for, at most, about 5% of Amazon's total revenue.

    AWS revenues are included in "Other" - about $3.9B in 2013 (see page 25 of 10K). Amazon's total 2013 revenues were about $74B. So, if AWS accounted for the vast majority of "Other", its share of revenue would be only about 5%.
    Apr 11, 2014. 09:58 AM | 1 Like Like |Link to Comment
  • Amazon And Netflix See Opportunity As Studios Abandon Small Films [View article]
    According to Netflix's own web site (see excerpt below), they neither own nor produce "House of Cards". Media Rights Capital owns "House of Cards" and Sony is a distribution partner. Netflix is licensing first-run rights to original content, similar to the broadcast and cable networks.

    http://nflx.it/Xzc0uh

    “House of Cards” is unique, as it is the first exclusive TV series to originate on Netflix.... “House of Cards” represents a slightly more risky approach; while we aren’t producing the show and don’t own it, we are agreeing to license it before it is successfully produced."
    Mar 24, 2014. 11:44 AM | Likes Like |Link to Comment
  • Second season of House of Cards delivers for Netflix [View news story]
    You are correct.
    Media Rights Capital owns "House of Cards" and Sony has international distribution rights.
    (http://on.wsj.com/1cpXQRr and http://nflx.it/Xzc0uh)
    Feb 19, 2014. 09:35 AM | 1 Like Like |Link to Comment
  • Smartphone shipments top 1B for 1st time; Samsung extends lead [View news story]
    In 4Q13, Samsung operating income was $7.74B, down 6% year-over-year; the first decline in more than two years.

    Cellphones and telecom equipment accounted for 66% or $5.1B of total operating income. Operating margin for the division fell to 16% from 17.8%, a year earlier.
    http://bit.ly/1mYNKZh
    Jan 29, 2014. 04:45 PM | Likes Like |Link to Comment
  • LinkedIn boosted by BMO on China launch [View news story]
    The release actually states that the price target was raised from $235 to $270 - see below:

    "BMO Capital upgraded LinkedIn (NYSE: LNKD) from Market Perform to Outperform with a price target of $270.00 (from $235.00),..."

    http://bit.ly/1ju0YhL
    Dec 6, 2013. 10:01 AM | 1 Like Like |Link to Comment
  • 2 Reasons Why Amazon.com Will Again Miss Revenue Estimates [View article]
    NWCorner - good point. Where determining incremental purchases of physical products is difficult, one can look at the growth rate of Amazon's media sales to get an estimate of how successful the Kindle Fire has been.

    According to Amazon 10Q filings, the quarterly year-over-year growth rate of Amazon's worldwide media sales have decreased from 19% in 1Q12 (Kindle Fire was available on 11/15/11) to 7% in 2Q13.

    Media sales should be accelerating, not decelerating. In addition, any sales of media, like physical goods, attributed to the Kindle Fire have to be incremental to what the buyer would have purchased without the device for true value to be realized.
    Sep 25, 2013. 10:50 AM | Likes Like |Link to Comment
  • Amazon launches new tablets, cuts Fire HD price, enables offline viewing [View news story]
    According to Amazon 10Q filings, the quarterly year-over-year growth rate of Amazon's worldwide media sales have decreased from 19% in 1Q12 (Kindle Fire was available on 11/15/11) to 7% in 2Q13.

    If Kindle devices were successful at spurring purchases of media (e-books, videos, music, games, etc.), one would expect the growth rate for media sales to accelerate, not decelerate. In addition, any sales of media attributed to the Kindle Fire have to be incremental to what the buyer would have purchased without the device for true value to be realized.
    Sep 25, 2013. 10:37 AM | Likes Like |Link to Comment
  • Cable networks dominate Emmys, Netflix picks up first award [View news story]
    According to Netflix's own web site (http://nflx.it/Xzc0uh), they did not produce, nor do they own "House of Cards" (see excerpt from web site below).

    “House of Cards” represents a slightly more risky approach; while we aren’t producing the show and don’t own it, we are agreeing to license it before it is successfully produced."
    Sep 23, 2013. 09:10 AM | Likes Like |Link to Comment
  • More on Apple: iOS 7, 5C pre-orders, sapphire touchscreen rumor [View news story]
    According to the Apple web site, "iCloud Keychain" is "Coming Soon" - see: http://bit.ly/1a7tik2

    Here's an excerpt:
    "Now iCloud can remember your account names, passwords, and credit card numbers for you. And Safari will enter them automatically whenever you need to sign in to a site or shop online."

    Also, Apple has chosen not to release the finger print scanner API to 3rd party developers - http://bit.ly/1a7tik3
    Sep 19, 2013. 02:25 PM | Likes Like |Link to Comment
  • Sell side: 5C not cheap enough [View news story]
    Actually, Strategy Analytics estimates that Samsung had greater handset (feature phone + smartphone) profits than Apple in 2Q13.

    Here is an excerpt from the report:
    Neil Shah, Senior Analyst at Strategy Analytics, said, "We estimate Samsung's operating profit for its handset division stood at US$5.2 billion in the second quarter of 2013. Samsung overtook Apple for the first time, which recorded an estimated iPhone operating profit of US$4.6 billion. With strong volumes,
    http://prn.to/12p8YLu
    Sep 11, 2013. 03:42 PM | 2 Likes Like |Link to Comment
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