It's climbing back into positive territory.
Amazon crushes estimates, coming in at $14.09 on on EPS, nearly doubling the $7.34 expected, yet the stock is down slightly after hours because Jeff Bezos announced that he is stepping down as CEO.
Tom
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I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
It's climbing back into positive territory.
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Amazon posts third $100 billion quarter in a row, but still misses expectations
https://www.cnbc.com/2021/07/29/amaz...s-q2-2021.htmlHere’s how the company did:
Earnings: $15.12 vs $12.30 per share, according to analysts surveyed by Refinitiv
Revenue: $113.08 billion vs $115.2 billion, according to analysts surveyed by Refinitiv
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
First time in I don't know when, AMZN price target was downgraded by 10 major investment houses today.
Atlantic is the most "bearish" with a $3,800 target. Susquehanna is the most bullish with a $5,000 target.
Life is tough when you top earnings estimates, on LOWER than expected revenue. That only means Amazon is better at earning money off it's sales than expected. I don't know why , with better than expected earnings, the stock share price would fall over 7%. I think they are doing fine.
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Of course they're doing fine, they're the most successful company in the history of the universe, but for a so-called market leader, it's been range bound for a year now with a failed breakout last week.
Point is, high PE stocks (AMZN 69) are priced for blowout earnings. If the blowout estimate isn't blown out, then the stock drops hard.
Retail getting smashed today with some companies down more than others. Looks like there were a bunch financial tricks in the previous earnings quarters and a huge reliance on stimulus checks. Despite the drops (JWN -16%, URBN -8%, ANF -5%, BBY -.8%) most retail stocks remain range bound YTD (BBY tried to break out today, but is getting pushed down). The mighty AMZN has been range bound for a year and it really makes me wonder where that stock would be without their cloud services which have been a hurricane force tailwind for years.
As usual there were some financial tricks in previous quarters that stopped working, but mostly the bump in spending from stimulus checks is drying up and store traffic is down. Sure, online is fine, but what about all those employees and real estate leases that need to be paid?
I'm doing what I can to keep Amazon busy. I see FedEx, UPS and Amazon trucks up and down my street at least twice a day. That doesn't include what USPS delivers.
May the force be with us.
Great, I don't know anyone who doesn't have an Amazon Prime account, but that doesn't do anything to explain why the stock is flat since July 2020. It also doesn't explain why retail in general has been flat since March 2021.
The big money maker is Amazon Web Services which makes up some 60% of profits. Their advertising business is also bringing in money. Retail wise, Amazon Prime Day brings discounts across the entire retail spectrum pulling many sales forward that may have been purchased down the road (back to school).
It kind of reminds me of something both Apple and Microsoft went through after sharp rallies beforehand. AMZN shot up more than 50% from PRE covid crash levels into July of 2020 - more than 100% since the Covid lows.
Apple had a period from 2012 to 2016 where kept clinging to that 21 - 22 area after a big rally beforehand.
Microsoft had a two year stint where it kept coming back to 45 after more than tripling beforehand.
So maybe one year consolidation in AMZN is just a temporary roadblock before it blasts off again. But it's only been a year, so maybe it will go on a while longer?
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
Big miss for Amazon earnings after the bell. It's down about 4% in initial after hours reaction.
Tom
Market Commentary | My Blog | TSP Talk Plus | |
I am not a Registered Investment Advisor and this is not investment advice. Please do your own due diligence.
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