Amazon: This Is The Price Where I Will Load Up

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Amazon: This Is The Price Where I Will Load Up

Seeking Alpha2022-11-28

SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...

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MIe
·2022-11-29
Amazon dip a buy opp for long term upside
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2
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TigerHulk
·2022-11-28
Sure or not?
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Tanyl
·2022-11-28
Buy call Amz now
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1
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heyuok
·2022-11-28
Not yet
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Shirley Soh
·2022-11-28
Good
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CIK
·2022-11-28
Very useful information [Heart]
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Aivern
·2022-11-28
The thing with YoY analysis is that you are comparing this year, a poor performing year, to 2022 Q3 which is the height of the pandemic share price boom. Once 2023 rolls around the benchmark is much lower as you'll be comparing to 2022 Q3. While his price target is not impossible, it would be amazon's retail biz going to complete sh*t. When it reaches that point they'll be better off splitting off AWS and letting it run.
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- Heyminnie:
  ok
  2022-11-28
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- Limcc:
  👍
  2022-11-28
  Reply
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- ngckkk:
  hmm
  2022-11-28
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TeslaLegend
·2022-11-28
Nice
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Ironman2002
·2022-11-28
$52 - $57? Wait long long may be can get😀
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TripleWin
·2022-11-28
[Like]
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7
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- Tiga3:
  👍
  2022-11-28
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- Visionaire91:
  Hh g
  2022-11-28
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- TripleWin:
  [Like]
  2022-11-28
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kevinlaisq
·2022-11-28
Ok
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- Ichua:
  Ok
  2022-11-28
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Patmos
·2022-11-28
Don't agree Amazon is closing the gap in sales to Walmart to become number 1
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4
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- Patmos:
  [Grin]
  2022-11-28
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- kevinlaisq:
  ok
  2022-11-28
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Optionspuppy
·2022-11-28
Haha I buy at 93 with $10 voucher happy enough already
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- jllwang:
  Same
  2022-11-28
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- Zarkness:
  Woah nice
  2022-11-28
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Kucing
·2022-11-28
Great
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- Kucing:
  yes
  2022-11-28
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Ahsiang
·2022-11-28
Sure anot
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phantom74
·2022-11-28
ok
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- Holidaymood:
  Ok
  2022-11-28
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Hayz
·2022-11-28
50bucks?
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5
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- Zarkness:
  Yaa they say so
  2022-11-28
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In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[{"id":9966745874,"gmtCreate":1669671836798,"gmtModify":1676538219666,"author":{"id":"3577182936341023","authorId":"3577182936341023","name":"MIe","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"hat":"https://static.tigerbbs.com/f84d87792f02cf78e80ee34979fd31e5","crmLevel":5,"crmLevelSwitch":0},"htmlText":"Amazon dip a buy opp for long term upside&nbsp;","listText":"Amazon dip a buy opp for long term upside&nbsp;","text":"Amazon dip a buy opp for long term upside","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9966745874","repostId":2286703379,"repostType":4,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9966701495,"gmtCreate":1669633708618,"gmtModify":1676538216337,"author":{"id":"4111448269923362","authorId":"4111448269923362","name":"TigerHulk","avatar":"https://community-static.tradeup.com/news/7e7eab37ff9d954e24641370934ae3c0","vip":1,"hat":"https://static.tigerbbs.com/ae1f49570794979e009a5efdeb6f4789","crmLevel":6,"crmLevelSwitch":1},"htmlText":"Sure or not?","listText":"Sure or not?","text":"Sure or not?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9966701495","repostId":2286703379,"repostType":4,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9966700364,"gmtCreate":1669632711159,"gmtModify":1676538216208,"author":{"id":"4087109808120260","authorId":"4087109808120260","name":"Tanyl","avatar":"https://static.tigerbbs.com/174329973340cf0f5b68791ee5b08afd","vip":1,"crmLevel":7,"crmLevelSwitch":1},"htmlText":"Buy call Amz now","listText":"Buy call Amz now","text":"Buy call Amz now","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9966700364","repostId":2286703379,"repostType":4,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9966424790,"gmtCreate":1669621539810,"gmtModify":1676538214709,"author":{"id":"4097065430024300","authorId":"4097065430024300","name":"heyuok","avatar":"https://community-static.tradeup.com/news/d4213acea70865e9aab52095a54781c2","vip":1,"crmLevel":1,"crmLevelSwitch":1},"htmlText":"Not yet","listText":"Not yet","text":"Not yet","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9966424790","repostId":2286703379,"repostType":2,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9966424367,"gmtCreate":1669621382259,"gmtModify":1676538214686,"author":{"id":"4100664503126340","authorId":"4100664503126340","name":"Shirley Soh","avatar":"https://community-static.tradeup.com/news/784ec5f33096066f43c22d219e548bac","vip":1,"crmLevel":8,"crmLevelSwitch":1},"htmlText":"Good","listText":"Good","text":"Good","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9966424367","repostId":2286703379,"repostType":4,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9966421054,"gmtCreate":1669618465779,"gmtModify":1676538214442,"author":{"id":"4115967022531642","authorId":"4115967022531642","name":"CIK","avatar":"https://community-static.tradeup.com/news/d76f0ce24b9378b87d777188e4b990b9","vip":1,"crmLevel":3,"crmLevelSwitch":1},"htmlText":"Very useful information&nbsp;[Heart]&nbsp;","listText":"Very useful information&nbsp;[Heart]&nbsp;","text":"Very useful information [Heart]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9966421054","repostId":2286703379,"repostType":2,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9966423754,"gmtCreate":1669618430279,"gmtModify":1676538214405,"author":{"id":"4097767435236930","authorId":"4097767435236930","name":"Aivern","avatar":"https://static.tigerbbs.com/3827d6c7271c872fcc616eaa9b4f7f54","vip":1,"crmLevel":3,"crmLevelSwitch":1},"htmlText":"The thing with YoY analysis is that you are comparing this year, a poor performing year, to 2022 Q3 which is the height of the pandemic share price boom. Once 2023 rolls around the benchmark is much lower as you'll be comparing to 2022 Q3. While his price target is not impossible, it would be amazon's retail biz going to complete sh*t. When it reaches that point they'll be better off splitting off AWS and letting it run.","listText":"The thing with YoY analysis is that you are comparing this year, a poor performing year, to 2022 Q3 which is the height of the pandemic share price boom. Once 2023 rolls around the benchmark is much lower as you'll be comparing to 2022 Q3. While his price target is not impossible, it would be amazon's retail biz going to complete sh*t. When it reaches that point they'll be better off splitting off AWS and letting it run.","text":"The thing with YoY analysis is that you are comparing this year, a poor performing year, to 2022 Q3 which is the height of the pandemic share price boom. Once 2023 rolls around the benchmark is much lower as you'll be comparing to 2022 Q3. While his price target is not impossible, it would be amazon's retail biz going to complete sh*t. When it reaches that point they'll be better off splitting off AWS and letting it run.","images":[],"top":1,"highlighted":2,"essential":1,"paper":1,"likeSize":20,"commentSize":20,"repostSize":0,"link":"https://ttm.financial/post/9966423754","repostId":2286703379,"repostType":2,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104981380,"gmtCreate":1669620692588,"gmtModify":1669620705420,"authorId":4114682744788502,"author":{"id":4114682744788502,"authorId":4114682744788502,"name":"Heyminnie","avatar":"https://community-static.tradeup.com/news/35f6a83a369819d840168698935ff66b","vip":1,"crmLevel":1,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966423754,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"},{"id":104981368,"gmtCreate":1669620613164,"gmtModify":1669620626601,"authorId":3555613921632988,"author":{"id":3555613921632988,"authorId":3555613921632988,"name":"Limcc","avatar":"https://community-static.tradeup.com/news/17b4f58941ca7ed36fff3b5b3e613e29","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966423754,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">👍</span>","text":"<span class=\"s1\">👍</span>","html":"<span class=\"s1\">👍</span>"},{"id":104981367,"gmtCreate":1669620605442,"gmtModify":1669620618788,"authorId":3556014229499035,"author":{"id":3556014229499035,"authorId":3556014229499035,"name":"ngckkk","avatar":"https://static.tigerbbs.com/d1e114dfd4580625c8151f1dd0b330fc","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966423754,"type":1,"supId":0,"prevId":0,"content":"<u>hmm</u>","text":"<u>hmm</u>","html":"<u>hmm</u>"},{"id":104981365,"gmtCreate":1669620592749,"gmtModify":1669620606063,"authorId":3574309252756598,"author":{"id":3574309252756598,"authorId":3574309252756598,"name":"jaffer","avatar":"https://static.tigerbbs.com/1a3d779d7e90da7a7b584e147536abf7","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966423754,"type":1,"supId":0,"prevId":0,"content":"ok","text":"ok","html":"ok"},{"id":104981351,"gmtCreate":1669620494082,"gmtModify":1669620507400,"authorId":3572482309404214,"author":{"id":3572482309404214,"authorId":3572482309404214,"name":"DericPiew","avatar":"https://static.tigerbbs.com/75ccf79ff136db80eba96ff2adb91032","vip":1,"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966423754,"type":1,"supId":0,"prevId":0,"content":"<u>k</u>","text":"<u>k</u>","html":"<u>k</u>"}],"langContent":"EN"},{"id":9966465940,"gmtCreate":1669615022980,"gmtModify":1676538214106,"author":{"id":"3572489627147183","authorId":"3572489627147183","name":"TeslaLegend","avatar":"https://static.tigerbbs.com/180ad6f06095bcbf2b6594d26c494752","vip":1,"hat":"https://static.tigerbbs.com/f84859c65fc2d7681e28f6b8e9b0535a","crmLevel":3,"crmLevelSwitch":1},"htmlText":"Nice","listText":"Nice","text":"Nice","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9966465940","repostId":2286703379,"repostType":4,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9966466769,"gmtCreate":1669614721351,"gmtModify":1676538214068,"author":{"id":"4094301913132990","authorId":"4094301913132990","name":"Ironman2002","avatar":"https://static.tigerbbs.com/784449fc945cf9d5c7b81316e20a221c","vip":1,"crmLevel":5,"crmLevelSwitch":1},"htmlText":"$52 - $57? Wait long long may be can get😀","listText":"$52 - $57? Wait long long may be can get😀","text":"$52 - $57? Wait long long may be can get😀","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9966466769","repostId":2286703379,"repostType":2,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9966468377,"gmtCreate":1669614094999,"gmtModify":1676538214009,"author":{"id":"3577489740102994","authorId":"3577489740102994","name":"TripleWin","avatar":"https://static.tigerbbs.com/36f6d7690fd546416bd6f74b156c218f","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"[Like]&nbsp;","listText":"[Like]&nbsp;","text":"[Like]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":3,"repostSize":0,"link":"https://ttm.financial/post/9966468377","repostId":2286703379,"repostType":4,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104981936,"gmtCreate":1669625610455,"gmtModify":1669625623475,"authorId":4097364354121310,"author":{"id":4097364354121310,"authorId":4097364354121310,"name":"Tiga3","avatar":"https://community-static.tradeup.com/news/d556c8154d920b9f7c522a48404ce275","vip":1,"currentWearingBadge":{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.06.29","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1102},"crmLevel":5,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966468377,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">👍</span>","text":"<span class=\"s1\">👍</span>","html":"<span class=\"s1\">👍</span>"},{"id":104981596,"gmtCreate":1669623378284,"gmtModify":1669623391634,"authorId":3575064919547722,"author":{"id":3575064919547722,"authorId":3575064919547722,"name":"Visionaire91","avatar":"https://static.tigerbbs.com/59415b21e30304def0b99d0d4d41259e","vip":1,"crmLevel":4,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966468377,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Hh g</span>","text":"<span class=\"s1\">Hh g</span>","html":"<span class=\"s1\">Hh g</span>"},{"id":104980519,"gmtCreate":1669614123820,"gmtModify":1669614136722,"authorId":3577489740102994,"author":{"id":3577489740102994,"authorId":3577489740102994,"name":"TripleWin","avatar":"https://static.tigerbbs.com/36f6d7690fd546416bd6f74b156c218f","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966468377,"type":1,"supId":0,"prevId":0,"content":"[Like]","text":"[Like]","html":"[Like]"}],"langContent":"EN"},{"id":9966461870,"gmtCreate":1669613880090,"gmtModify":1676538213986,"author":{"id":"3572874548548490","authorId":"3572874548548490","name":"kevinlaisq","avatar":"https://static.tigerbbs.com/329de1199f764a89b7cadf50308e183d","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Ok","listText":"Ok","text":"Ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9966461870","repostId":2286703379,"repostType":4,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104982936,"gmtCreate":1669632003533,"gmtModify":1669632017328,"authorId":3554848762875033,"author":{"id":3554848762875033,"authorId":3554848762875033,"name":"Ichua","avatar":"https://static.tigerbbs.com/175ebc8e659de3f491645e9236066d54","vip":1,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966461870,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"}],"langContent":"EN"},{"id":9966460443,"gmtCreate":1669613073382,"gmtModify":1676538213854,"author":{"id":"4107097862867960","authorId":"4107097862867960","name":"Patmos","avatar":"https://community-static.tradeup.com/news/d0b2e09fdb3dc618e98d3ac304599118","vip":1,"crmLevel":1,"crmLevelSwitch":0},"htmlText":"Don't agree Amazon is closing the gap in sales to Walmart to become number 1","listText":"Don't agree Amazon is closing the gap in sales to Walmart to become number 1","text":"Don't agree Amazon is closing the gap in sales to Walmart to become number 1","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/9966460443","repostId":2286703379,"repostType":2,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104980491,"gmtCreate":1669613923349,"gmtModify":1669613936038,"authorId":4107097862867960,"author":{"id":4107097862867960,"authorId":4107097862867960,"name":"Patmos","avatar":"https://community-static.tradeup.com/news/d0b2e09fdb3dc618e98d3ac304599118","vip":1,"currentWearingBadge":{"badgeId":"7a9f168ff73447fe856ed6c938b61789-1","templateUuid":"7a9f168ff73447fe856ed6c938b61789","name":"Knowledgeable Investor","description":"Traded more than 10 stocks","bigImgUrl":"https://static.tigerbbs.com/e74cc24115c4fbae6154ec1b1041bf47","smallImgUrl":"https://static.tigerbbs.com/d48265cbfd97c57f9048db29f22227b0","grayImgUrl":"https://static.tigerbbs.com/76c6d6898b073c77e1c537ebe9ac1c57","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.03.23","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1102},"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966460443,"type":1,"supId":104980488,"prevId":0,"content":"<span class=\"s1\">[Grin]</span>","text":"<span class=\"s1\">[Grin]</span>","html":"<span class=\"s1\">[Grin]</span>"},{"id":104980488,"gmtCreate":1669613884410,"gmtModify":1669613896842,"authorId":3572874548548490,"author":{"id":3572874548548490,"authorId":3572874548548490,"name":"kevinlaisq","avatar":"https://static.tigerbbs.com/329de1199f764a89b7cadf50308e183d","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966460443,"type":1,"supId":0,"prevId":0,"content":"<u>ok</u>","text":"<u>ok</u>","html":"<u>ok</u>"}],"langContent":"EN"},{"id":9966460139,"gmtCreate":1669612973722,"gmtModify":1676538213838,"author":{"id":"4089501973615070","authorId":"4089501973615070","name":"Optionspuppy","avatar":"https://static.tigerbbs.com/caf34258aff8afe478620b82647f1199","vip":2,"hat":"https://static.tigerbbs.com/b073a07f77dbe6b3bec6b12311fde6bd","crmLevel":6,"crmLevelSwitch":1},"htmlText":"Haha I buy at 93 with $10 voucher&nbsp;happy enough already&nbsp;","listText":"Haha I buy at 93 with $10 voucher&nbsp;happy enough already&nbsp;","text":"Haha I buy at 93 with $10 voucher happy enough already","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":7,"commentSize":2,"repostSize":0,"link":"https://ttm.financial/post/9966460139","repostId":2286703379,"repostType":2,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104980540,"gmtCreate":1669614264255,"gmtModify":1669614273937,"authorId":3567745604737709,"author":{"id":3567745604737709,"authorId":3567745604737709,"name":"jllwang","avatar":"https://static.tigerbbs.com/366d7ae96d4681048d49130306d50c5d","vip":1,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-3","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"President Tiger","description":"The transaction amount of the securities account reaches $1,000,000","bigImgUrl":"https://static.tigerbbs.com/fbeac6bb240db7da8b972e5183d050ba","smallImgUrl":"https://static.tigerbbs.com/436cdf80292b99f0a992e78750ac4e3a","grayImgUrl":"https://static.tigerbbs.com/506a259a7b456f037592c3b23c779599","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.07.14","exceedPercentage":"93.70%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1101},"crmLevel":8,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966460139,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Same</span>","text":"<span class=\"s1\">Same</span>","html":"<span class=\"s1\">Same</span>"},{"id":104980352,"gmtCreate":1669613126126,"gmtModify":1669613140529,"authorId":3572916667219493,"author":{"id":3572916667219493,"authorId":3572916667219493,"name":"Zarkness","avatar":"https://static.tigerbbs.com/4b8c61830c4883c4232aece921d89d14","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.10.09","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966460139,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Woah nice</span>","text":"<span class=\"s1\">Woah nice</span>","html":"<span class=\"s1\">Woah nice</span>"}],"langContent":"EN"},{"id":9966417746,"gmtCreate":1669610191186,"gmtModify":1676538213487,"author":{"id":"3584520268259172","authorId":"3584520268259172","name":"Kucing","avatar":"https://static.tigerbbs.com/3c4942db49a9ed9bfaecacc7837dec2f","vip":1,"crmLevel":6,"crmLevelSwitch":1},"htmlText":"Great","listText":"Great","text":"Great","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9966417746","repostId":2286703379,"repostType":4,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104979755,"gmtCreate":1669610197048,"gmtModify":1669610210824,"authorId":3584520268259172,"author":{"id":3584520268259172,"authorId":3584520268259172,"name":"Kucing","avatar":"https://static.tigerbbs.com/3c4942db49a9ed9bfaecacc7837dec2f","vip":1,"currentWearingBadge":{"badgeId":"44212b71d0be4ec88898348dbe882e03-2","templateUuid":"44212b71d0be4ec88898348dbe882e03","name":"Executive Tiger","description":"The transaction amount of the securities account reaches $300,000","bigImgUrl":"https://static.tigerbbs.com/9d20b23f1b6335407f882bc5c2ad12c0","smallImgUrl":"https://static.tigerbbs.com/ada3b4533518ace8404a3f6dd192bd29","grayImgUrl":"https://static.tigerbbs.com/177f283ba21d1c077054dac07f88f3bd","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.01.30","exceedPercentage":"80.18%","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1101},"crmLevel":6,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966417746,"type":1,"supId":0,"prevId":0,"content":"<u>yes</u>","text":"<u>yes</u>","html":"<u>yes</u>"}],"langContent":"EN"},{"id":9966411964,"gmtCreate":1669608687259,"gmtModify":1676538213065,"author":{"id":"3582617881962608","authorId":"3582617881962608","name":"Ahsiang","avatar":"https://static.tigerbbs.com/310f96e7696af85ae33ece774a483d15","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Sure anot","listText":"Sure anot","text":"Sure anot","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9966411964","repostId":2286703379,"repostType":4,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9966413482,"gmtCreate":1669608667847,"gmtModify":1676538213057,"author":{"id":"3570342809089528","authorId":"3570342809089528","name":"phantom74","avatar":"https://static.tigerbbs.com/c87ef2af41b8696be86cceafb5b5723d","vip":1,"hat":"https://static.tigerbbs.com/b0a2963eb37c60c5d6d4a8dbcd266952","crmLevel":3,"crmLevelSwitch":0},"htmlText":"ok","listText":"ok","text":"ok","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9966413482","repostId":2286703379,"repostType":4,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104979824,"gmtCreate":1669610464901,"gmtModify":1669610477975,"authorId":3577917989847586,"author":{"id":3577917989847586,"authorId":3577917989847586,"name":"Holidaymood","avatar":"https://static.tigerbbs.com/c2f7be8cd64ecb0e1182c0d9afae636f","vip":1,"crmLevel":5,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966413482,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Ok</span>","text":"<span class=\"s1\">Ok</span>","html":"<span class=\"s1\">Ok</span>"}],"langContent":"EN"},{"id":9966410287,"gmtCreate":1669608020450,"gmtModify":1676538212944,"author":{"id":"3576709204489965","authorId":"3576709204489965","name":"Hayz","avatar":"https://static.tigerbbs.com/d87598e3b13004920f673918b320782e","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"50bucks?","listText":"50bucks?","text":"50bucks?","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/9966410287","repostId":2286703379,"repostType":4,"repost":{"id":"2286703379","pubTimestamp":1669607156,"share":"https://www.laohu8.com/m/news/2286703379?lang=&edition=full","pubTime":"2022-11-28 11:45","market":"us","language":"en","title":"Amazon: This Is The Price Where I Will Load Up","url":"https://stock-news.laohu8.com/highlight/detail?id=2286703379","media":"Seeking Alpha","summary":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and n","content":"<html><head></head><body><h2>Summary</h2><ul><li>Amazon’s business is seeing a major post-pandemic slowdown.</li><li>The e-Commerce is struggling and not consistently profitable.</li><li>However, if shares fall to this price level, I will consider buying.</li></ul><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84e65294f63443cd34524af0f54c3ad6\" tg-width=\"1080\" tg-height=\"720\" width=\"100%\" height=\"auto\"/><span>4kodiak/iStock Unreleased via Getty Images</span></p><p>Amazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!</p><h2>Amazon: From pandemic winner to problem child</h2><p>Amazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon&#39;s net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon&#39;s revenue growth is going through a post-pandemic normalization period and the firm&#39;s outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/a7d756d50c1e1916bc411fd316f5bdca\" tg-width=\"635\" tg-height=\"417\" width=\"100%\" height=\"auto\"/><span>Data by YCharts</span></p><p>Amazon&#39;s Q4&#39;22 outlook calls for $140B to $148B in revenues which implies that the firm&#39;s growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.</p><p>Amazon&#39;s core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.</p><p>Amazon&#39;s Q3&#39;22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1&#39;22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c92af9065fb17b7a74a1781eeefa820e\" tg-width=\"640\" tg-height=\"640\" width=\"100%\" height=\"auto\"/><span>Source: Statista</span></p><p>Amazon&#39;s e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon&#39;s current problems. Amazon&#39;s North American e-Commerce segment generated 62% of consolidated revenues in Q3&#39;22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.</p><p>However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon&#39;s core business. Amazon&#39;s North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.</p><p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/d24cec7344eca1734fe8398bd854fa28\" tg-width=\"640\" tg-height=\"333\" width=\"100%\" height=\"auto\"/><span>Source: Amazon</span></p><p>The situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon&#39;s North American segment. The international segment generated $27.7B in Q3&#39;22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3&#39;22.</p><p>The bright spot, as I mentioned in &#34;Amazon: 2 Risks, 1 Opportunity&#34;, is Amazon&#39;s server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3&#39;22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.</p><h2>Here&#39;s the price I will buy Amazon at</h2><p>Amazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4&#39;22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon&#39;s top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don&#39;t look great either.</p><p>Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don&#39;t consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon&#39;s fast-growing AWS business.</p><h2>Risks with Amazon</h2><p>The biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon&#39;s top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.</p><h2>Final thoughts</h2><p>Amazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon&#39;s commercial performance in FY 2023.</p><p>I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon&#39;s share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm&#39;s long term growth prospects!</p><p><i>This article is written by The Asian Investor for reference only. Please note the risks.</i></p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Amazon: This Is The Price Where I Will Load Up</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nAmazon: This Is The Price Where I Will Load Up\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-11-28 11:45 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4560596-amazon-price-load-up><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4...</p>\n\n<a href=\"https://seekingalpha.com/article/4560596-amazon-price-load-up\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"AMZN":"亚马逊"},"source_url":"https://seekingalpha.com/article/4560596-amazon-price-load-up","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2286703379","content_text":"SummaryAmazon’s business is seeing a major post-pandemic slowdown.The e-Commerce is struggling and not consistently profitable.However, if shares fall to this price level, I will consider buying.4kodiak/iStock Unreleased via Getty ImagesAmazon (NASDAQ:AMZN) disappointed in October with its outlook for the fourth-quarter which called for top line growth of just 2-8%. In the near term, there is even the possibility of a further deceleration of revenuegrowth as the company faces multiple headwinds, especially in its e-Commerce business. In November, Amazon also announced major layoffs to prepare for a recession and stop the bleeding in the e-Commerce business. Since it appears to me that more down-side looms in the short term, I will discuss at what price I am going to load up on Amazon!Amazon: From pandemic winner to problem childAmazon was one of those companies that benefited tremendously from the COVID-19 pandemic in 2020 and 2021 which resulted inUS e-Commerce volumes soaring. Amazon's net revenues surged 38% year over year to $386.1B in FY 2021 and then another 22% to $469.8B in FY 2021. However, Amazon's revenue growth is going through a post-pandemic normalization period and the firm's outlook for the fourth-quarter showed that the period of hyper-growth is truly over for Amazon.Data by YChartsAmazon's Q4'22 outlook calls for $140B to $148B in revenues which implies that the firm's growth rate could slow to just 2% year over year in the fourth-quarter. It is therefore likely that Amazon will post the slowest growth ever as a public company in the near term, which could push shares of the e-Commerce giant into a new down-leg.Amazon's core e-Commerce operations have started to struggle last year -- as opposed to AWS which is doing great -- and it is likely the key motivation for Amazon to make major adjustments to its pay-roll. Amazon announced job cuts in November that could include up to 10 thousand jobs as the e-Commerce company readies itself for a recession in FY 2023 and addresses profitability problems in its core business.Amazon's Q3'22 e-Commerce revenues in the US totaled $78.8B, showing 20% year over year growth. The third-quarter was the second straight quarter of revenue acceleration after top line growth slowed to just 8% in Q1'22. However, a recession appears to be just around the cornerand some predictions (from Statista Digital Market Outlook) even project a first-ever decline in global e-Commerce sales in FY 2022.Source: StatistaAmazon's e-Commerce business is highly dependent on consumer spending and a US recession could compound Amazon's current problems. Amazon's North American e-Commerce segment generated 62% of consolidated revenues in Q3'22 while the international e-Commerce segment was responsible for 22% of revenues and AWS accounted for 16% top line share.However, the largest segment is profoundly unprofitable for Amazon, a situation which a US recession could make considerably worse and it could result in growing margin pressures in Amazon's core business. Amazon's North American e-Commerce operations generated cumulative operating losses of $2.8B in the trailing 12-month period ending September 30, 2022 which calculates to a negative margin of 0.9%.Source: AmazonThe situation is even worse for the international business, but less severe in total dollar terms because the international segment generates much lower revenues than Amazon's North American segment. The international segment generated $27.7B in Q3'22 revenues which is equal to just 35% of revenues in the North American e-Commerce business. International segment operating losses in the last 12-month period totaled $7.1B and reflected a negative operating margin of 5.9%. Both the international as well as the North American e-Commerce segments were consistently unprofitable in each of the last four quarters and losses in the international business escalated to $2.5B just in Q3'22.The bright spot, as I mentioned in \"Amazon: 2 Risks, 1 Opportunity\", is Amazon's server business - Amazon Web Services -- which is compensating for the decline in the e-Commerce business. Amazon Web Services generated $20.5B in net revenues in Q3'22, showing 27% year over year growth. The business is also super profitable with a 12-month trailing operating income of $22.9B and a margin of 30%.Here's the price I will buy Amazon atAmazon is projected to generate $510.8B in revenues in FY 2022 and $566.6B in FY 2023, implying growth rates of 9% and 11%. However, due in part to the disappointing forecast for Q4'22, forward EPS estimates have started to trend down hard in the last three months and the market now widely expects the business to continue to slow down in FY 2023. Unfortunately, there is also a real possibility that Amazon's top line will contract for the first time ever in FY 2023… it certainly is possible considering that the e-Commerce business is already struggling and margins don't look great either.Currently, shares of Amazon are priced at a P-E ratio of 1.7 X and a P/E ratio of 54.5 X. Amazon, on a consolidated level, is profitable, but the P/E ratio is rather high considering how slowly the top line is growing now. Although shares of Amazon have already lost 44% of their value in 2022, I don't consider shares of Amazon attractively priced yet. Amazon has high top line and estimate risks that are possibly at their highest in years right now, if not decades. To reflect those risks accurately, I would be willing to pay an 30-33 X P-E ratio for AMZN which translates to a price range of $52-57. This would be a very attractive price range to buy AMZN, if the stock price ever declines this much. A P/E ratio of 30-33 X would be a fair price to pay for Amazon's fast-growing AWS business.Risks with AmazonThe biggest risk for Amazon, as I see it, is that revenue growth in the first half of FY 2023 will continue to decelerate as the global economy slows down and consumers become more careful of how they spend their money. In the worst case, Amazon's top line growth could even turn negative although I believe Amazon will continue to grow over the long term, chiefly because of AWS. What I also see as a risk is a compression of margins (especially in the e-Commerce business) and Amazon may have to lay off more people going forward to boost profitability.Final thoughtsAmazon has built a formidable enterprise in the last two decades but there are core problems that I feel are not yet fully addressed. The e-Commerce business is slowing down hard and its margins are set to come under further pressure from a recession. AWS is providing a strong offset for Amazon, but e-Commerce, due to its large size within Amazon, should be expected to remain a drag on Amazon's commercial performance in FY 2023.I will back up the truck with shares of Amazon between $52-57 which implies a drawdown of 39% to 45% from current pricing and the growing possibility of a recession is what could drive shares down to this level. While there is no guarantee that Amazon's share price will drop this low, I believe this price level would reflect a valuation at which investors get a very decent discount on the firm's long term growth prospects!This article is written by The Asian Investor for reference only. Please note the risks.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":104980354,"gmtCreate":1669613150865,"gmtModify":1669613160873,"authorId":3572916667219493,"author":{"id":3572916667219493,"authorId":3572916667219493,"name":"Zarkness","avatar":"https://static.tigerbbs.com/4b8c61830c4883c4232aece921d89d14","vip":1,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-2","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Senior Tiger","description":"Join the tiger community for 1000 days","bigImgUrl":"https://static.tigerbbs.com/0063fb68ea29c9ae6858c58630e182d5","smallImgUrl":"https://static.tigerbbs.com/96c699a93be4214d4b49aea6a5a5d1a4","grayImgUrl":"https://static.tigerbbs.com/35b0e542a9ff77046ed69ef602bc105d","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2023.10.09","individualDisplayEnabled":0,"individualDisplaySort":0,"categoryType":1001},"crmLevel":3,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9966410287,"type":1,"supId":0,"prevId":0,"content":"<span class=\"s1\">Yaa they say so</span>","text":"<span class=\"s1\">Yaa they say so</span>","html":"<span class=\"s1\">Yaa they say so</span>"}],"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":123,"commentSize":0,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}