Amazon: No Longer A Growth Stock

32
Comment
Favorite

Amazon: No Longer A Growth Stock

Seeking Alpha2023-02-06

SummaryAmazon.com, Inc. beat on the topline for its Q4 2022 but missed on earnings.Growth is moderating overall and now also in Amazon Web Services.Estimate and valuation risks have increased for ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

吉慶
·2023-02-08
World economic is not doing good, but time will change and I believe people still need to Amazon. Buy when its price is low and in value.
Reply
Like
Report
T202311701
·2023-02-06
O
Reply
Like
Report
Andrewinho
·2023-02-06
Really? 🤭🤭🤭
Reply
Like
Report
4West
·2023-02-06
Buy
Reply
Like
Report

Most Discussed

7x24

All

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"share":"https://ttm.financial/m/news/2308489732?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2023-02-06 15:40","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2308489732","market":"us","top_or_hot":-1,"title":"Amazon: No Longer A Growth Stock","media":"Seeking Alpha","content":"<div>\n<p>SummaryAmazon.com, Inc. beat on the topline for its Q4 2022 but missed on earnings.Growth is moderating overall and now also in Amazon Web Services.Estimate and valuation risks have increased for ...</p>\n\n<a href=\"https://seekingalpha.com/article/4575232-amazon-no-longer-a-growth-stock\">Source Link</a>\n\n</div>\n","source":"seekingalpha_fund","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: No Longer A Growth Stock</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: No Longer A Growth Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-02-06 15:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4575232-amazon-no-longer-a-growth-stock><strong>Seeking Alpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SummaryAmazon.com, Inc. beat on the topline for its Q4 2022 but missed on earnings.Growth is moderating overall and now also in Amazon Web Services.Estimate and valuation risks have increased for ...</p>\n\n<a href=\"https://seekingalpha.com/article/4575232-amazon-no-longer-a-growth-stock\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4533","symbol_name":"AQR资本管理(全球第二大对冲基金)","start_time":0,"source_url":"https://seekingalpha.com/article/4575232-amazon-no-longer-a-growth-stock","article_id":"2308489732","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2308489732","pubTimestamp":1675669223,"sourceInfo":{"source_id":"seekingalpha_fund","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"SummaryAmazon.com, Inc. beat on the topline for its Q4 2022 but missed on earnings.Growth is moderat","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4533":"AQR资本管理(全球第二大对冲基金)","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","BK4550":"红杉资本持仓","LU0127658192.USD":"EASTSPRING INVESTMENTS GLOBAL TECHNOLOGY \"A\" (USD) ACC","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","LU0528227936.USD":"富达环球人口趋势基金A-ACC","LU0109392836.USD":"富兰克林科技股A","LU0149725797.USD":"汇丰美国股市经济规模基金","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4579":"人工智能","LU0234572021.USD":"高盛美国核心股票组合Acc","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","LU0109391861.USD":"富兰克林美国机遇基金A Acc","AMZN":"亚马逊","LU0786609619.USD":"高盛全球千禧一代股票组合Acc","BK4548":"巴美列捷福持仓","LU0354030438.USD":"富国美国大盘成长基金Cl A Acc","LU0456855351.SGD":"JPMorgan Funds - Global Equity A (acc) SGD","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","BK4581":"高盛持仓","LU0211327993.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (USD) ACC","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","LU0672654240.SGD":"FTIF - Franklin US Opportunities A Acc SGD-H1","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","BK4527":"明星科技股","BK4538":"云计算","BK4524":"宅经济概念","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","LU0289941410.SGD":"AB FCP I Dynamic Diversified AX SGD","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","BK4534":"瑞士信贷持仓","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","LU0310799852.SGD":"FTIF - Templeton Global Equity Income A MDIS SGD","LU0061474960.USD":"天利环球焦点基金AU Acc","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","BK4532":"文艺复兴科技持仓","BK4507":"流媒体概念","BK4535":"淡马锡持仓","LU0642271901.SGD":"Janus Henderson Horizon Global Technology Leaders A2 SGD-H","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU0312595415.SGD":"Schroder ISF Global Climate Change Equity A Acc SGD","LU0276348264.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN\"AUP\" (USD) INC","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","BK4559":"巴菲特持仓","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc"},"translate_title":"亚马逊：不再是成长股","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AMZN":1},"content_text":"SummaryAmazon.com, Inc. beat on the topline for its Q4 2022 but missed on earnings.Growth is moderating overall and now also in Amazon Web Services.Estimate and valuation risks have increased for Amazon.com, Inc.AdrianHancuAmazon.com, Inc. (NASDAQ:AMZN) submitted its earnings sheet for the fourth quarter yesterday, and the e-Commerce company disappointed in a number of ways. Although Amazon managed to generate stronger revenue growth than expected in the fourth quarter, moderating Cloud growth anda weak forecast for the first quarter strongly suggest that Amazon's shares will run into difficulty revaluing higher. Amazon's stock price dropped 5% after-hours, and I see estimate and valuation risks for Amazon in FY 2023. With Cloud now also weakening, the risk profile for Amazon remains skewed to the downside!Amazon's Q4'22 resultsAmazon reported revenues of $149.2B, which compared against an average topline estimate of $145.8B. The e-Commerce company fell short of EPS expectations, chiefly because of underwhelming results in e-Commerce as well as in Amazon Web Services (\"AWS\").Seeking AlphaAmazon is no longer a growthstockJust before Amazon submitted its earnings sheet for Q4'22, I warned that Amazon was likely to surprise to the downside (Amazon Q4: Nearing A Pivotal Moment) due to moderating topline growth in a weakening macro environment. Although Amazon did beat estimates regarding its Q4'22 revenues, growth concerns clearly overshadowed the company's earnings release.Amazon reported net revenues of $149.2B for the fourth quarter, showing a year-over-year growth rate of 9%. The result beat Amazon's projection of 2-8% topline growth for the fourth quarter, but the company warned explicitly of slowing growth in its fastest-growing segment, Amazon Web Services.Amazon Web Services grew its segment revenues to $21.4B, showing a year-over-year growth rate of 20%. I estimated that Amazon was going to see a slowdown in Amazon Web Services, as companies have started to spend money more carefully in a high-inflation world, but I didn't foresee such a sharp slowdown. Slowing AWS revenue growth is a problem for Amazon chiefly because Amazon Web Services is the fastest-growing segment within Amazon, and its operating profits are responsible for all of the company's consolidated operating income. The growth rate of 20% was also only half of what it was just in the year-ago quarter: in Q4'21, Amazon Web Services grew its revenues at a 40% year-over-year rate.E-Commerce did reasonably well in the fourth quarter, with Amazon's North America segment seeing its revenues rise 13% year-over-year to $93.4B. The international e-Commerce business had revenues of $34.5B, showing a year-over-year decrease of 8%. Unfortunately, Amazon once again reported steep losses in both of its e-Commerce segments, totaling $2.5B, which confirms my past criticism about Amazon's lack of profitability.AmazonProfitability challenges and declining operating incomeAmazon is facing profitability challenges in its e-Commerce business, and the company's investment in electric vehicle start-up Rivian Automotive (RIVN) added to the company's problems in the fourth quarter. In Q4'22, Amazon reported just $2.7B in operating income, showing a decline of 21% year over year. Amazon also recorded a $2.3B valuation loss related to Rivian. The valuation loss, which is included in Amazon's non-operating income (expense), compares against a massive valuation gain of $11.8B in the year-earlier period.AmazonAmazon's outlook for Q1'23Amazon expects topline growth of 4-8% in the first quarter and total revenues of between $121.0B and $126.0B, which is not an improvement over Q4'22 results. The outlook suggests stable growth, at best, and a sequential slowdown, at worst. The fourth quarter usually is a robust quarter for e-Commerce companies because of the holiday shopping period, which is why Amazon did better than expected in its forecast.Estimate risk and Amazon's valuationThe slowdown in Amazon's growth is a problem, especially because the company is viewed as a growth play for investors, many of which bought AMZN for its exposure to the fast-growing Cloud business. With growth slowing down more broadly and now including Amazon Web Services, there is a considerable chance that shares of Amazon will resume their downwards revaluation.Amazon is expected to generate EPS of $1.60 in FY 2023 and $2.86 in FY 2024, implying year-over-year growth of 79%. However, analysts are going to take Amazon's slowing AWS growth into consideration when they update their EPS forecasts, which means estimates should be expected to reset to the downside. Based off of FY 2024 EPS estimates, Amazon is valued at a P/E ratio of 39 X... which is high considering that Amazon's growth has slowed to the single digits.Data by YChartsRisks with AmazonThe near-term growth outlook for Amazon is not good, and it indicates that weakening topline growth and the trajectory in Cloud remain two key risks for Amazon and its stock. Additionally, Amazon has not yet addressed its profitability challenges in the e-Commerce segment, which is weighing on overall company performance. Amazon recently cut 18,000 jobs in an effort to control costs and limit losses, but it remains to be seen if those measures are sufficient to address Amazon's core profitability problem.Final thoughtsThe e-Commerce company delivered a mixed Q4'22 earnings sheet that showed better than expected fourth quarter topline growth, but Amazon at the same time warned of slowing growth in AWS… which is still Amazon's fastest-growing business.For those reasons, I believe Amazon.com, Inc. may no longer be a growth stock. Amazon's valuation multiplier is that of a growth stock, but the company is now growing only in the single digits. Growth concerns and downside revisions of EPS estimates are, in my opinion, set to continue to weigh on Amazon's valuation in FY 2023!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":9954062555,"gmtCreate":1675852663078,"gmtModify":1675852666731,"author":{"id":"4115816057337392","authorId":"4115816057337392","name":"吉慶","avatar":"https://community-static.tradeup.com/news/738daceb8088f8f40462fe504a021532","vip":1,"hat":"https://static.tigerbbs.com/4c5ceab71416b120bab4604c0754b52a","crmLevel":3,"crmLevelSwitch":0},"htmlText":"World economic is not doing good, but time will change and I believe people still need to Amazon. Buy when its price is low and in value.","listText":"World economic is not doing good, but time will change and I believe people still need to Amazon. Buy when its price is low and in value.","text":"World economic is not doing good, but time will change and I believe people still need to Amazon. Buy when its price is low and in value.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9954062555","repostId":2308489732,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9955481483,"gmtCreate":1675673047543,"gmtModify":1675673051084,"author":{"id":"4115257325505790","authorId":"4115257325505790","name":"T202311701","avatar":"https://community-static.tradeup.com/news/816311e9879fbae4e952e2a5386f68ca","vip":1,"crmLevel":9,"crmLevelSwitch":0},"htmlText":"O","listText":"O","text":"O","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9955481483","repostId":2308489732,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9955417802,"gmtCreate":1675669603706,"gmtModify":1675669608156,"author":{"id":"3581563418944392","authorId":"3581563418944392","name":"Andrewinho","avatar":"https://static.tigerbbs.com/3127e2bc40ab23064a5187a00a63e19b","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Really? 🤭🤭🤭","listText":"Really? 🤭🤭🤭","text":"Really? 🤭🤭🤭","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9955417802","repostId":2308489732,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":9955417923,"gmtCreate":1675669008662,"gmtModify":1675669014349,"author":{"id":"4112575701443832","authorId":"4112575701443832","name":"4West","avatar":"https://community-static.tradeup.com/news/4f1621f91b85bb6814f52425dfbe6add","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Buy","listText":"Buy","text":"Buy","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/9955417923","repostId":2308489732,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":32,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}