Already have an account? log in
This article is FREE for you
Create a free account and join institutional investors, analysts and strategists from the world's largest banks
By submitting your email address you agree to receive communication by email
Apple Impresses. Amazon Worries With Profit Guide
Amazon topped estimates and guided ahead of the Street for current-quarter sales, but I don't know i
OR, subscribe now for unlimited access
By submitting your email address you agree to receive communication by email
By submitting your email address you agree to receive communication by email
Amazon didn’t guide low enough. Tariffs are going to kill demand on retail side of the business.
AMZN AWS was merely inline, rev $30.9BN vs cons $30.8BN, EBIT $10.2BN vs cons 10.9BN. EBIT margin -250bp (and -670bp sequentially) blamed on seasonality of stock comp and higher depreciation, is lowest margin AWS has posted since 4Q23. Rev gro “only” +17.5%, accel’d only a little from 1Q, analysts gnawed at Jassy for some wink on 2H accel but only got lemon-sucking reminder AWS is growing from a base 2X larger than nearest comp. Analysts don’t care about the e-commerce business, either the rising margins or declining shipping costs or impressive accel in Int’l. No gushing or fawning on call. I’m not fussed about the guid, AMZN routinely gives lowball guidance (typically a very wide range with top barely meeting cons) to hold Street down then beats it. The issue is if you extrapolate 35% growth for Azure and 17% for AWS, how long before AWS is #2.