Amazon reports earnings this week and it's been one of the best companies of the decade. The growth seems to never end. I don't have a position, but I watch Amazon closely to see what's going on at the company.
The key for me is quarterly revenue growth. They saw a massive boom in revenue during the first part of the lockdown. The question now is: what next? Does that growth continue? One thing I have been thinking about is as the lockdowns eased and people went about their lives, more and more people realized how important it was to get out and support local businesses. I think that may actually impact Amazon which is largely a drop ship hub for things made overseas. Let's find out...
Also, AWS has been their big winner. But, as the cloud grows so to do more competitors and companies offering cloud solutions. From Google to Microsoft and IBM and even more upstarts, AWS does not have as much of a free lunch as it once did. Oh, Cisco and TikTok, too. This is going to get really competitive. I will also be watching margins closely.
Amazon is a fantastic company that has proven the naysayers wrong over and over again. There's no reason to bet against it. That's why I am just going to be watching this upcoming earnings report closely, waiting for those growth numbers and margins. Maybe I will trade it after that.
Nice write up. I like your insights. Well balanced. AWS still has the biggest market share. I want to check somewhere the competitive pricing of these cloud solutions to understand whether and why companies that are small in size would choose AWS, over Google, etc. Without any charts , looking at Prime Day results indicates a huge Q4, meaning better place your bets now for the next Earnings Report because money will be up ... as far as this week's reporting on earnings I think very optimistic but nervous ... The good news as far as I'm concerned, is that even if it misses, it will spike right back up, hence I'd say place your bets ...
scheplick
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@sipiceanu, I agree "why companies that are small in size would choose AWS, over Google, etc." that's the key. AWS has been so key to their growth. Can they maintain it?
PropNotes
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@scheplick, I've actually seen some numbers that support google cloud being the cheapest up until you get to enterprise scale, then Azure and AWS compete and google gets more expensive
famakpharm
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great job man
CobraVanguard
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good job 👌
XForceGlobal
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Great post man!
Robat-prince
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Good Work
Saeed966
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The breakthrough moving average may fall again
PropNotes
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One thing I have been thinking about is as the lockdowns eased and people went about their lives, more and more people realized how important it was to get out and support local businesses.
it's funny, I've been thinking the opposite and about how much I enjoy using amazon and how it has entrenched me as a customer
sethnovick
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Ad sales Ad sales Ad sales. AMZN is the king of undercover "social" All those FREE customer reviews. Throw in ads for products that they are selling on their own site to capture sales at point of purchase. Amazon Fresh and Whole foods delivery is fantastic. Twitch still killing it. Oh and that AWS thing. I think this AMZN has a future. 🤓