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Amazon.com announces fourth quarter results [pdf]
- IAmWorried 5y agoIt seems like they mostly missed their projections. Could someone help me understand why the stock is spiking after hours?
- blawson 5y agoAlgos trading purely on the EPS beat due to Rivian?
- paulpauper 5y agoit was oversold
- ganeshkrishnan 5y agoI dont understand either. I guess it was already oversold for days before that which means this is a dead cat bounce or traders taking their profits
- topicseed 5y agoSales up 9%, AWS is going strong, and Prime's price is going up.
- atwebb 5y ago>Prime's price is going up. and it is seen as sticky enough to not lose tons of subscribers.
- karmasimida 5y agoI mean it is merely 6 months of Netflix for you. To me it is like a steal
- chrisseaton 5y agoBecause Amazon’s expectations are just one part of the system. If they exceeded your expectations you may be bullish today.
- pyrrhotech 5y agoThe numbers were pretty bad, big miss on revenue and guidance below analyst expectations. It seems the market was pricing in even worse numbers, given the terrible stock performance over the last quarter and last 18 months. It's really only up 6-7% over yesterday's close after taking out today's fear drop related to the abysmal FB report yesterday. After FB's most disastrous ER in modern history for a megacap, just about anything looks better in comparison.
- coliveira 5y agoThe stock was already down a lot in the last few days. Investors just had a moment of relief to learn that the reality was not as bad as they imagined.
- myroon5 5y agoAWS with 40% year-over-year growth (and now a $71 billion revenue run rate)
- steelstraw 5y agoMost of their net income was from the Rivian investment? Net income increased to $14.3 billion in the fourth quarter, or $27.75 per diluted share, compared with $7.2 billion, or $14.09 per diluted share, in fourth quarter 2020. Fourth quarter 2021 net income includes a pre-tax valuation gain of $11.8 billion included in non-operating income from our common stock investment in Rivian Automotive, Inc., which completed an initial public offering in November.
- nostromo 5y agoAnd Rivian is down 41% since Q4 ended... that'll be a big headwind next quarter for Amazon.
- meragrin_ 5y agoI'm pretty sure it does not work that way unless they sell. Rivian's IPO changed the nature of Amazon's investment so that probably triggered the reporting. Now it won't affect the bottom line unless they sell or some other major event occurs.
- jpgvm 5y agoIt actually does work that way. They consider these investments as cash equivalents so they are reported mark to market, which will be a significant paper loss that can offset profits elsewhere and make for an ugly looking quarter.
- Lehman_Brothers 5y agoThis and the FB earnings disaster? There's no way the tech sector won't implode this year, just like 2000
- blue_box 5y ago> With the continued expansion of Prime member benefits as well as the rise in wages and transportation costs, Amazon will increase the price of a Prime membership in the U.S., with the monthly fee going from $12.99 to $14.99, and the annual membership from $119 to $139. This is the first time Amazon has raised the price of Prime since 2018. For new Prime members, the price change will go into effect on February 18, 2022, and for current Prime members, the new price will apply after March 25, 2022, on the date of their next renewal.
- solidangle 5y agoWow, $14.99/month is a stark difference with the €2.99/month that they charge for a Prime subscription here in The Netherlands. I wonder if they will increase the subscription fee here to the same level once they reach the desired market share in the video streaming and e-commerce spaces here.
- cozzyd 5y agoMy guess is that the logistics of 2 day delivery in the Netherlands is much easier.
- solidangle 5y ago2-day delivery would be uncompetitive in The Netherlands. Next day delivery is the standard for webshops here, and most offer same day delivery as a paid upgrade when you either order before noon or live in a large city.
- dmoy 5y agoStill the general point stands. The Netherlands is like a quarter of the area of New York state alone, and has about the same population.
- cozzyd 5y agoyeah, it'd be nice if Amazon had an urban discount in the US :). Deliveries to large multifamily buildings must be tons more efficient than to the 'burbs.
- alangibson 5y agoNothing lasts forever, but it's hard not to see AWS and Amazon (thanks to Prime) as unassailable.
- pulse7 5y agoFor Titanic somebody claimed that is was practically unsinkable: "God himself could not sink this ship!" ... and we know what happened...
- alangibson 5y agoThe Dutch East India Company was worth around 6B adjusted dollars. Where are they now... Obviously Amazon is not invincible, but it's hard to imagine a scenario where they get beaten. It's going to take the ground shifting out from under them.
- oblio 5y ago> The Dutch East India Company was worth around 6B adjusted dollars. Here, you dropped 3 zeroes: 6T.
- openknot 5y agoThe landscape is far from a monopoly: Costco and Wal-Mart provide strong competition for Amazon retail, and Azure is competing well with AWS too.
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- legitster 5y agoIf I understand correctly, their net sales went up nearly 100 billion dollars in 2021, but their small increase in income entirely came from AWS. It's a pretty common theory that their retail division is just around the corner from reaping massive economies of scale. But they just had one of the biggest retail years ever had by a company in history and might have lost money overall.
- gitfan86 5y agoThat sounds right, no one ever said that scaling ends at 400B.
- Moeancurly 5y agoDoes anyone without Prime really miss it? Or did you cancel and regret it? Mine is up for renewal at the end of this month, fairly certain I'm not going to renew regardless of a price hike.
- gordon_freeman 5y agoHave cancelled mine a few years back as I realized the only thing I was using is 2-day shipping but I have been just ordering multiple items which exceed $25 to leverage FREE shipping and usually they ship fast. So no need for Prime for me!
- justinwp 5y agoI don't miss it. Just watch out that they select automatically the non free option for shipping even if there is a free option with the same expected delivery. (This is for > $25 orders.) I'm located far from a distribution center so that might make a difference.
- Workaccount2 5y agoI canceled a year ago after 15 years. I don't miss it at all. I do miss the amazon of 10 years ago though.
- bigthymer 5y ago
- granzymes 5y agoThe most significant piece of information, in my opinion, is that this is the first time that Amazon has broken out advertising services. This disclosure might be contributing to their stock performing well after hours, given their guidance miss. Advertising grew 32% year over year to $9.7 billion during the quarter, which puts them third after Google ($61.2 billion) and Facebook ($28.3 billion).
- gpt5 5y agoTo be fair, everyone knew that Amazon's "Other" category was almost entirely advertising in previous reports. I think that the market is happy for three reasons: 1. Algorithms misreading the high earnings ($11.8B out of the $14.2B is just a Rivian accounting adjustment). 2. AWS experiencing 40% YoY growth (accelerating QoQ for a while, while both Azure and Google Cloud are decelerating). 3. Advertising doing well.
- granzymes 5y ago>To be fair, everyone knew that Amazon's "Other" category was almost entirely advertising in previous reports. This is true.
- vasili111 5y ago> while both Azure and Google Cloud are decelerating Could you please provide the links?
- gpt5 5y agoCheck their quarterly reports. Azure YoY Growth: Q2: 51% Q3: 50% Q4: 46% Google Cloud YoY growth: Q2: 53% Q3: 45% Q4: 45% AWS YoY Growth: Q2: 37% Q3: 39% Q4: 40%
- manquer 5y agoForward looking guidance is made by the company for the next quarter in the current quarter. Missing guidance means that company which lot of visibility into its sales and operations had unanticipated changes to its operations and that is generally bad. Analysts estimates are made by Wall Street predicting performance of the company without insider info (in theory), top analysts generally get access to companies they cover while company management are not supposed to disclose any material non public information in such meetings, even when following the law to letter lot of indirect information would become available, Matt Levine has written often on Regulation FD [1] . The point is estimates have some basis in fact and information as well. [1] https://www.bloomberg.com/opinion/articles/2021-03-09/sec-goes-after-analyst-foreshadowing https://www.bloomberg.com/opinion/articles/2021-03-09/sec-go...
- apollo1213 5y agoDirect link: https://docmadeeasy.com/v/907248667 https://docmadeeasy.com/v/907248667
- ABeeSea 5y agoThe change in cash flow especially cash flow less leases leads me to believe they are massively expanding either data centers, warehouses, or both. New aws regions? New amazon country launches? Or more if each in their existing locales? Either way, those are some hefty new investments they put cash down for.
- jsiaajdsdaa 5y agoTurning inefficient corporate spending into rockets is a really interesting phenomenon in our system :)
- anm89 5y agoThey are up more than 1% of us GDP in after hours trading. They are up half the entire value of Facebook in after hours trading. They are up about the GDP of Finland in after hours trading.
- deleted 5y ago[deleted]
- thehappypm 5y agoMarket cap is stupid.
- anm89 5y agothank you for the insight
- lvl100 5y agoI see such a big disconnect between AMZN and GOOGL. Google is so much cheaper compared to Amazon. And this past quarter showed, Google is executing at a much better pace and quality.
- oblio 5y agoCheaper how?
- lvl100 5y agoFor example, PEG is nearly 3x for AMZN. At such size and scale, how are investors betting that Amazon will continue to out grow the rest of tech monopolies?
- trhway 5y agoGoogle has only one business - search, and so far hasn't been able to show an ability to build another money printing machine, and actually an opposite - they are failing at cloud for example. Compare that to AMZN which has already 2 - the store/marketplace and the AWS. That difference between 1 and 2 is humongous. The tech history is littered with one-trick ponies.
- deleted 5y ago[deleted]
- post_break 5y agoPrime membership going up to $139 in the US might be a breaking point for a lot of people. Netflix just went up too.
- wintermutestwin 5y agoIncreasing the cost of Prime now??? My recent prime orders have all exceeded 1-2weeks for delivery. Prime is really losing its stickiness for me: The only things I get from Prime that are of value to me are: 1) 5% off all purchases using a Prime CC. - I can get 2% with other cards and have the freedom to pick and choose where I buy from. 2) Free shipping (that once was quick, but now it isn't and I have had no communication as to why and when it will return) - $139 pays for a lot of shipping - particularly if I am patient and aggregate orders. Dropping Prime gives me the moral benefit of kicking a monopolizing data thief to the curb. Starting to sound like a no-brainer.
- joshstrange 5y agoDo you lose the 5% if you aren't a prime customer? I though that was just 5% on Amazon purchases but I could be wrong. But I agree in terms of speed of delivery, a lot of items aren't prime (super dark patterns on this front) and the ones that are get delayed by a few days normally. I don't use Prime Video or anything else from Amazon so maybe I should re-consider my subscription. They are now just shy of what I pay for /every/ JetBrains product annually with a whole lot less useful for me.
- wintermutestwin 5y agoI just checked it and it is 5% on Amz purchases for Prime members and 3% for non-members. Even things marked as Prime are taking 1-2 weeks for me. (I'm ~1hr from a major city) I'm probably ditching my Prime sub when it comes up for renewal.
- joshstrange 5y agoHmm, well then it really comes down to "Do 2% of your Amazon Purchases equal $140 or more?" (Aka, do you spend more than $7000 at Amazon), last year I did spend more than that so I guess Prime pays for itself in my case.
- paulpauper 5y agoAnother huge stock surge for a company that is already huge, similar to Google two days ago. A portfolio composed of 10 of the biggest, most dominant tech and payment processing companies would have posted an annual CACR since 2009 of 35%. [1] It would also have smaller drawdowns than the S&P 500. That is as good as Renaissance Medallion (after fees). A 2x leverage version of such a hypothetical fund would have done 10-20% better than Medallion before fees. [1] https://greyenlightenment.com/2022/02/01/why-infrastructure-beats-growth-and-innovation/ https://greyenlightenment.com/2022/02/01/why-infrastructure-...