Amazon: Delivering Strength As We Enter 2024

Simple Investing
2023-11-24

Summary

  • Amazon's 3Q23 revenue of $143.1 billion exceeded expectations and was at the high end of guidance.
  • Operating income of $11.2 billion beat guidance by 32%, with outperformance in multiple areas, including North American Retail and AWS.
  • The company also provided an update on its generative AI traction.
  • Prime Video's traction remains encouraging, and it looks like it can be a large and profitable business on its own.

Daria Nipot

Today, I will be reviewing the opportunity for Amazon (NASDAQ:AMZN).

Given that this is the second consecutive quarter of strong margin improvement for Amazon, I also revised my financial forecasts for the company and the corresponding intrinsic values and

3Q23

Net sales (Amazon)

Operating income (Amazon)

AWS segment results (Amazon)

AWS

Generative AI

Improvement in fulfilment network

Prime Video

Valuation

Conclusion

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