11 ms·

Amazon Q1/2022 [pdf]

77 points by ckastner 4y ago

xchaotic 4y ago
No longer focused on growth it seems.
- McLaren_Ferrari 4y ago
  How can you grow when you sell 500B dollars of products per year?
  - jjtheblunt 4y ago
    expand to the next planet?
    - JaimeThompson 4y ago
      That would require Blue Origin to actually put things in Earth orbit first, something they seem to have great difficulty doing.
      - jjtheblunt 4y ago
        ha! agreed!
  - deleted 4y ago
    [deleted]
Jayakumark 4y ago
Kind of expected on EPS as Rivian took the hit compared to Last quarter.
- qgin 4y ago
  Not super rational for market rates act surprised at RIVN contribution since the RIVN stock price is available to anyone who cares every second of every day. No reason to drop it after hours today for that.
  - mediaman 4y ago
    I think the market is (hopefully) reacting to margins on their core retail business, and top-line guidance. RIVN has added lots of noise to earnings.
endisneigh 4y ago
Feels like the tech bubble is bursting haha. Big co seems to be relatively safe but so many others are down 50%+ YTD. Robinhood, Wish, Peloton, Affirm, Opendoor, Roku, etc. etc.
- rvz 4y ago
  Indeed it is. More like the Big Tech Crash of 2022.
- qgin 4y ago
  AMZN p/s is less than half of MCD
  - reducesuffering 4y ago
    P/S is almost never a comparable metric when margins like Amazon retail can be like 5%. AMZN p/s is also 4x Walmart.
- gitfan86 4y ago
  TDOC,COIN,RIVN. Yes this seems like a good thing. The multiples are getting more realistic
  - ninkendo 4y ago
    The fact that 9 companies have been named and nobody even mentioned Netflix is a pretty telling sign. Down 70% from its peak last year!
  - sgerenser 4y ago
    Hey those 3 are Cathie Wood’s best investment ideas! Poised for 40% annual growth over the next 5 years.
- akira2501 4y ago
  Is it a tech bubble, or a mergers and acquisitions bubble?
- mr_toad 4y ago
arberx 4y ago
They guided lower: key take away
ArtWomb 4y ago
AWS Rev $18.44B, ~3-4x GCloud, wow. Just got invite to re:MARS AI & Space conf, Jun 24 las vegas ;) https://remars.amazonevents.com/ https://remars.amazonevents.com/
- deleted 4y ago
  [deleted]
- StratusBen 4y ago
  Not only is it that high it's growing 37% year-over-year! Really insane to see a business this large growing that quickly. Still very much the early days of cloud infrastructure adoption.
Weryj 4y ago
As a recently departed employee. This section was a complete joke. “Investing in Employees and Our Workplace“. “These mental health benefits enhance existing benefits, which include 24/7 access to free, one-on-one counseling sessions, suicide prevention resources, and customized support.” And by that they mean those terrible app based counselling services. The best thing they did do was a free Headspace subscription, but they cancelled it after 2 months. Edit: I just wanted to add one more thing, since I was working in Canada my salary was half that of an American, but baselined against the same people in Seattle. If I’m working at your high American bar, I want your salary. Salt in the wound.
- amazonthrow1231 4y ago
  Amazon is a large company. Experiences are going to vary widely. I work maybe 2 hours a day. Oncall is pretty light when I do have it. Fulfilling team and projects with great career opportunities. I have no meetings Wed-Fri. I have under 3 years of experience and my compensation this year after reviews went from: 164K base -> 218K base Total compensation: 220K for 2021 calendar year -> 305K for 2022 calendar year -> 378K for 2023 calendar year I'm pretty happy as an employee personally though I realize not everyone is. Edit: Some commentators seem to be implying that I'm chasing money and bringing down the culture of Amazon by not working more - that seems ironic to me given Amazon has historically been criticized for its sweatshop reputation. To clarify, I work 2 hours a week because that's all I need to work to deliver my projects on time and I was rated TT this year - so why would I work more?
  - 2OEH8eoCRo0 4y ago
    Hello, Amazon recruiter.
  - weakfish 4y ago
    Yeah, I wonder how the warehouse employees are faring.
  - endisneigh 4y ago
    who does all of the actual work if you're only working 2 hours a day?
chollida1 4y ago
Numbers: - Q1 Operating Income 3.7B est 5.42B, wow, that's a big miss - Q1 Net Sales 116.4B vs Est of 116.43, - AWS Net $18.4B EST 18.2B - subscription sales - operating margin 3.2% vs 4.7Est, that's another big miss - loss of 7.56/share vs a profit of 15.79/share a year ago, again highlights the danger of a very low margin business model that makes it up on volume, when all your inputs go up in price. - their first quarterly loss in 7 years. - international business was down a fair bit, both in profits and sales, This is something to watch as US sales are probably not a growth area anymore and bulls were watching this areas specifically for growth. Not only fail to grow here but to show a loss is concerning. - their trailing 12M P/E was 124 and their forward 12M P/E is 55, so everyone expects far less growth in the future Notes: - looks like its the sales forcast that algos seem to hate - reporting a loss for Q1 and projecting another loss for Q2, given that we're long gone from the run at a loss to grow days of Amazon, this is something to watch. Maybe people are finally starting to buy local again? - starting to bring down other ecommerce companies which helps support the people buying in person thesis some analysts have been pushing - From Bloomberg, Worldwide shipping costs jumped 14% to $19.6 billion. Meanwhile, revenue from online store sales dropped 3% and revenue from third-party sellers services increased 9%. Inflation is exposing the dangers of Amazon’s low-margin e-commerce model that has conditioned customers to expect low prices and quick delivery. - price of a prime membership is going up, probably a good idea, i know people who have given up netflix, I know no one who has given up a prime membership. Far more value with prime than netflix. - retention of employee's could be interesting to watch as a stock that could very likely be worth less in a years time than it is now would be a big paycut for alot of devs. - shares down 10% at one point. Option implied movement is 7.6% so this is an oversized move. - Rivian really boosted amazon last year adding 11.8B to their bottom line but the stock forced amazon to take a 7.6B loss on Rivian this quarter, so I guess this isn't something to be concerned with as this was never real anyway. - interestingly, the CFO just said they have too many people at teh company, though he didn't clarify if it was warehouse or developers, I'm guessing its mostly the former and any developer head count downsizing will come from employees who leave due to a share price that is coming down
- booboofixer 4y ago
  > Maybe people are finally starting to buy local again? I'm sorry i dont know how to read these reports, but do they have numbers for usage of amazon prime? My guess would be people aren't buying local or online, they just aren't buying a lot of things anymore because of inflation.
recuter 4y ago
Bezos retired less than a year ago. Circa 2017 he owned 20% of AMZN. Presently he owns 10%. Back in 1997 he owed 42%. https://www.forbes.com/sites/rachelsandler/2021/06/24/heres-how-much-money-jeff-bezos-has-reaped-from-selling-amazon-stock https://www.forbes.com/sites/rachelsandler/2021/06/24/heres-...
- chollida1 4y ago
  I see he owns 49,927,744 shares as of march 2nd for an ownership of 9.82%.
- xxpor 4y ago
  There might have been a major personal life event in there....
  - dredmorbius 4y ago
    Great Scott! You might be right!
greatpostman 4y ago
Amazon gave everyone big base raises, pretty clear they knew the stock was going down. This company is going to fall on hard times, a lot of current employees have not been treated well
- iLoveOncall 4y ago
  Employees have not been treated well for a very long time and the stock performed just fine then.
  - greatpostman 4y ago
    They got away with it precisely because the stock was booming
    - bigcat123 4y ago
Barrera 4y ago
From CNBC: > Growth rates are at their slowest since the dot-com bust in 2001. > The company recorded a $7.6 billion loss on its investment in electric vehicle maker Rivian. > Earnings: $7.38 per share, adjusted, vs. $8.36 expected, according to Refinitiv https://www.cnbc.com/2022/04/28/amazon-amzn-q1-2022-earnings.html https://www.cnbc.com/2022/04/28/amazon-amzn-q1-2022-earnings... This is a terrible report for a company of the size and in the leading retail position that Amazon is. Amazon has never been a company where price to earnings ratios mattered much, but a 12% miss is not small potatoes. It bodes very poorly for earnings reports from second-tier consumer products companies and distributors.
- deskamess 4y ago
  Not good for shareholders but AMZN has always reinvested in itself at the expense of everyone else. It is the Amazon way.

77 points by ckastner 4y ago

xchaotic 4y ago

No longer focused on growth it seems.

McLaren_Ferrari 4y ago
How can you grow when you sell 500B dollars of products per year?
- jjtheblunt 4y ago
  expand to the next planet?
  - JaimeThompson 4y ago
    That would require Blue Origin to actually put things in Earth orbit first, something they seem to have great difficulty doing.
    - jjtheblunt 4y ago
      ha! agreed!
- deleted 4y ago
  [deleted]

Jayakumark 4y ago

Kind of expected on EPS as Rivian took the hit compared to Last quarter.

qgin 4y ago
Not super rational for market rates act surprised at RIVN contribution since the RIVN stock price is available to anyone who cares every second of every day. No reason to drop it after hours today for that.
- mediaman 4y ago
  I think the market is (hopefully) reacting to margins on their core retail business, and top-line guidance. RIVN has added lots of noise to earnings.

endisneigh 4y ago

Feels like the tech bubble is bursting haha. Big co seems to be relatively safe but so many others are down 50%+ YTD. Robinhood, Wish, Peloton, Affirm, Opendoor, Roku, etc. etc.

rvz 4y ago
Indeed it is. More like the Big Tech Crash of 2022.
qgin 4y ago
AMZN p/s is less than half of MCD
- reducesuffering 4y ago
  P/S is almost never a comparable metric when margins like Amazon retail can be like 5%. AMZN p/s is also 4x Walmart.
gitfan86 4y ago
TDOC,COIN,RIVN. Yes this seems like a good thing. The multiples are getting more realistic
- ninkendo 4y ago
  The fact that 9 companies have been named and nobody even mentioned Netflix is a pretty telling sign. Down 70% from its peak last year!
- sgerenser 4y ago
  Hey those 3 are Cathie Wood’s best investment ideas! Poised for 40% annual growth over the next 5 years.
akira2501 4y ago
Is it a tech bubble, or a mergers and acquisitions bubble?
mr_toad 4y ago

arberx 4y ago

They guided lower: key take away

ArtWomb 4y ago

AWS Rev $18.44B, ~3-4x GCloud, wow. Just got invite to re:MARS AI & Space conf, Jun 24 las vegas ;) https://remars.amazonevents.com/ https://remars.amazonevents.com/

deleted 4y ago
[deleted]
StratusBen 4y ago
Not only is it that high it's growing 37% year-over-year! Really insane to see a business this large growing that quickly. Still very much the early days of cloud infrastructure adoption.

Weryj 4y ago

As a recently departed employee. This section was a complete joke. “Investing in Employees and Our Workplace“. “These mental health benefits enhance existing benefits, which include 24/7 access to free, one-on-one counseling sessions, suicide prevention resources, and customized support.” And by that they mean those terrible app based counselling services. The best thing they did do was a free Headspace subscription, but they cancelled it after 2 months. Edit: I just wanted to add one more thing, since I was working in Canada my salary was half that of an American, but baselined against the same people in Seattle. If I’m working at your high American bar, I want your salary. Salt in the wound.

amazonthrow1231 4y ago
Amazon is a large company. Experiences are going to vary widely. I work maybe 2 hours a day. Oncall is pretty light when I do have it. Fulfilling team and projects with great career opportunities. I have no meetings Wed-Fri. I have under 3 years of experience and my compensation this year after reviews went from: 164K base -> 218K base Total compensation: 220K for 2021 calendar year -> 305K for 2022 calendar year -> 378K for 2023 calendar year I'm pretty happy as an employee personally though I realize not everyone is. Edit: Some commentators seem to be implying that I'm chasing money and bringing down the culture of Amazon by not working more - that seems ironic to me given Amazon has historically been criticized for its sweatshop reputation. To clarify, I work 2 hours a week because that's all I need to work to deliver my projects on time and I was rated TT this year - so why would I work more?
- 2OEH8eoCRo0 4y ago
  Hello, Amazon recruiter.
- weakfish 4y ago
  Yeah, I wonder how the warehouse employees are faring.
- endisneigh 4y ago
  who does all of the actual work if you're only working 2 hours a day?

chollida1 4y ago

Numbers: - Q1 Operating Income 3.7B est 5.42B, wow, that's a big miss - Q1 Net Sales 116.4B vs Est of 116.43, - AWS Net $18.4B EST 18.2B - subscription sales - operating margin 3.2% vs 4.7Est, that's another big miss - loss of 7.56/share vs a profit of 15.79/share a year ago, again highlights the danger of a very low margin business model that makes it up on volume, when all your inputs go up in price. - their first quarterly loss in 7 years. - international business was down a fair bit, both in profits and sales, This is something to watch as US sales are probably not a growth area anymore and bulls were watching this areas specifically for growth. Not only fail to grow here but to show a loss is concerning. - their trailing 12M P/E was 124 and their forward 12M P/E is 55, so everyone expects far less growth in the future Notes: - looks like its the sales forcast that algos seem to hate - reporting a loss for Q1 and projecting another loss for Q2, given that we're long gone from the run at a loss to grow days of Amazon, this is something to watch. Maybe people are finally starting to buy local again? - starting to bring down other ecommerce companies which helps support the people buying in person thesis some analysts have been pushing - From Bloomberg, Worldwide shipping costs jumped 14% to $19.6 billion. Meanwhile, revenue from online store sales dropped 3% and revenue from third-party sellers services increased 9%. Inflation is exposing the dangers of Amazon’s low-margin e-commerce model that has conditioned customers to expect low prices and quick delivery. - price of a prime membership is going up, probably a good idea, i know people who have given up netflix, I know no one who has given up a prime membership. Far more value with prime than netflix. - retention of employee's could be interesting to watch as a stock that could very likely be worth less in a years time than it is now would be a big paycut for alot of devs. - shares down 10% at one point. Option implied movement is 7.6% so this is an oversized move. - Rivian really boosted amazon last year adding 11.8B to their bottom line but the stock forced amazon to take a 7.6B loss on Rivian this quarter, so I guess this isn't something to be concerned with as this was never real anyway. - interestingly, the CFO just said they have too many people at teh company, though he didn't clarify if it was warehouse or developers, I'm guessing its mostly the former and any developer head count downsizing will come from employees who leave due to a share price that is coming down

booboofixer 4y ago
> Maybe people are finally starting to buy local again? I'm sorry i dont know how to read these reports, but do they have numbers for usage of amazon prime? My guess would be people aren't buying local or online, they just aren't buying a lot of things anymore because of inflation.

recuter 4y ago

Bezos retired less than a year ago. Circa 2017 he owned 20% of AMZN. Presently he owns 10%. Back in 1997 he owed 42%. https://www.forbes.com/sites/rachelsandler/2021/06/24/heres-how-much-money-jeff-bezos-has-reaped-from-selling-amazon-stock https://www.forbes.com/sites/rachelsandler/2021/06/24/heres-...

chollida1 4y ago
I see he owns 49,927,744 shares as of march 2nd for an ownership of 9.82%.
xxpor 4y ago
There might have been a major personal life event in there....
- dredmorbius 4y ago
  Great Scott! You might be right!

greatpostman 4y ago

Amazon gave everyone big base raises, pretty clear they knew the stock was going down. This company is going to fall on hard times, a lot of current employees have not been treated well

iLoveOncall 4y ago
Employees have not been treated well for a very long time and the stock performed just fine then.
- greatpostman 4y ago
  They got away with it precisely because the stock was booming
  - bigcat123 4y ago

Barrera 4y ago

From CNBC: > Growth rates are at their slowest since the dot-com bust in 2001. > The company recorded a $7.6 billion loss on its investment in electric vehicle maker Rivian. > Earnings: $7.38 per share, adjusted, vs. $8.36 expected, according to Refinitiv https://www.cnbc.com/2022/04/28/amazon-amzn-q1-2022-earnings.html https://www.cnbc.com/2022/04/28/amazon-amzn-q1-2022-earnings... This is a terrible report for a company of the size and in the leading retail position that Amazon is. Amazon has never been a company where price to earnings ratios mattered much, but a 12% miss is not small potatoes. It bodes very poorly for earnings reports from second-tier consumer products companies and distributors.

deskamess 4y ago
Not good for shareholders but AMZN has always reinvested in itself at the expense of everyone else. It is the Amazon way.