5 ms·

Those AMZN numbers are completely nonsensical, how do you beat estimates by 9x? Who the hell did that estimating???

• selectodude 6y ago
  Amazon promised to spend all of their profits on reinvestment into the company, but they didn't.
  • donor20 6y ago
    Uh? They expected to have $4B in profit, said they may spend $4B on extra expenses this period -> but demand has SOARED and they already huge, so absolutely pumping out the $. I know we've read about the major strikes by Amazon workers here repeatedly (supposedly all of them walking out etc). Doesn't seem to have affected the top line sales at least.
• crdrost 6y ago
  Possible that estimates were before COVID was affecting us?
• nostrademons 6y ago
  Because Amazon is comparatively low-margin vs. other tech companies, improved revenue has a much greater effect on earnings. Amazon's revenue was $88.9B vs. $81.24B expected. That's each household spending about 10% more from Amazon, which is pretty reasonable with lockdown and nobody going to brick & mortar retail outlets. But with expenses at around $80B, that translates into earnings of $10.30/share vs. $1.51.
  • mikeschmatz 6y ago
    > Because Amazon is comparatively low-margin vs. other tech companies, improved revenue has a much greater effect on earnings. Are you saying that 10% revenue increase has led to 10x earnings beat? That doesn't make any sense.
    • UncleMeat 6y ago
      If a lot of their costs are fixed it makes sense.
    • esoterica 6y ago
      How does basic arithmetic not make sense? If you were expected to make $1.01 and spend $1, and instead you made $1.10 and spent $1, your revenue only beat by 9% but your income beat by 900%.
• mikeschmatz 6y ago
  You purposely set them very low, then "beat" them and watch stock price go to the moon.