"$Amazon.com(AMZN)$decided to cut back after years of pouring money into growth, and the result was a second consecutive quarterly loss, but a beat on sales and continued strong growth from Amazon Web Services (AWS) helped push the stock higher.
Amazon shares jumped 12% before the market open on Friday following the release of the results. [Surprised] +[Speechless]
Reported a 2Q22 loss of $2 billion, -$0.20 EPS. [Surprised]
Sales of $121.2 billion. [Grin] [Like]
The previous year's results have been adjusted for Amazon's 20-to-1 stock split, and the 2Q results include a loss of $3.9 billion as a result of a valuation decline for an investment in Rivian Automotive. It is the first time Amazon has posted back-to-back quarterly losses since the 2Q and 3Q of 2014. [sigh] 👎
Analysts on average expected Amazon to post earnings of $0.12 EPS on sales of $119 billion, according to FactSet.
Amazon has long relied on its AWS cloud-computing service to make up for the thin-to-negative margins on its e-commerce business, but there were concerns that cloud-computing growth could slow down, as other tech businesses that rely on the service see pullbacks and cost cuts. Oppenheimer analysts projected that Amazon will look to cut prices on AWS as well.
AWS hasn't had price cuts in the past couple of years = possible price cut expectation in 2H22, by analysts. [Thinking]
AWS kept growing and producing strong profit in the 2Q. AWS produced operating income of $5.72 billion on revenue of $19.74 billion, up from operating profit of $4.19 billion on revenue of $14.81 billion a year ago, for a revenue growth rate of 33.3%. Analysts on average expected AWS operating income of $6.04 billion on net sales of $19.56 billion. [Surprised] +[Thinking]
For the 3Q, executives guided for revenue of $125 billion to $130 billion and operating income of break-even to $3.5 billion. Analysts on average were forecasting operating income of $4.39 billion on revenue of $126.49 billion, according to FactSet. [Thinking]
Amazon reported a workforce of 1.523 million workers as of the end of the 2Q, down from 1.622 million at the end of the 1Q.
Amazon have slowed their 2022 and 2023 operations expansion plans to better align with expected customer demand, Olsavsky said."
All in one, my take away is that Amazon is not doing that well... but I'd no idea why big investors put so many trust on the AWS growth & push the share price all the way up to 137 USD+...[Speechless] . In my opinion , Amazon share price is kinda overvalued in the current bad economy situation [Helpless]. Not matters how I looked at it, it's a red flag 🚩 for mid term investors, in my opinion [Thinking] ...
Short-term investors = YOLO betting on "big investors" to keep pouring in [Allin] .
Long-term investors = Should be OK 👍 if u can wait 10 to 15 years [Grin] 💎 ✋️.
DYODD before investing [OK]
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