Amazon’s shares fell approximately 4% on Thursday evening, despite the Cloud e -commerce and giant who reported a fourth quarter stronger than expected behind the closing bell. Market participants during prolonged trading dealt with a prediction of the first quarter of 2025 that lost estimates and a plan of capital expenditures greater than expected. However, we do not see any articles like changing the thesis. Revenue increased 10% year by year $ 187.8 billion, beating expectations for $ 187.3 billion, according to estimates compiled by LSEG. Action earnings based on generally accepted accounting principles (GAAP) increased to $ 1.86, compared to a dollar last year and estimate $ 1.49. Operating revenue increased 61% over the past year to $ 21.2 billion, overcoming the $ 19 billion consensus forecast. Amazon why we own it: Amazon may be widely known for online purchases, but his cloud business is also a baker. Advertising is another fast -growing business with high boundaries. Management has worked to aggressively reduce distribution times and reduce overall costs. Prime Minister Lever Free transport and transmission of video with other tones to keep users pay each month. Competitors: Walmart, Target, Microsoft and the latest purchase alphabet Date: August 12, 2024 Initiated: February 2018 Amazon’s lower line merged another impressive quarter of profit thanks to income growth in high margin flows such as AWS and Advertising while holding down costs in its e -commerce business. This quarter would have been even better and the income would have exceeded the upper end of his range of guidance if not for currency, which hit the income at $ 700 million more than expected. Of course, the view of the first trimester was a little easier than expected, but we are not stressing for it because Amazon has a history of forecasting. Although the market has turned its back on the fugitive spending habits from Big HypersCalers, Amazon Andy Jassy’s CEO was sure that these investments will be worth the long -term plane. “He certainly represents the greatest opportunity from cloud and maybe changing and the biggest opportunity of business technology from the Internet. And so I think of how our business, our customers and shareholders will be happy to average until time Long that we are following capital opportunities and business opportunities in it, ”he explained. AMZN 1y Mountain Amazon 1 year in general, Amazon high margins business lines continue to lose. Management that has a view of viewing to reduce its cost to serve this year means that borders must continue to grow up. If the borders are going higher, we want to continue to own Amazon. We are reiterating our 1 rating and will increase our price target to $ 260 from $ 240. The revenue of the Cloud Asamo (AWS) comment unit increased 19% year by year, marking the third direct quarter of the same annual rate. The results followed a trend we saw from Azure of Microsoft and Google Cloud this season of profits, with revenue technically missing consensus estimates, but essentially in accordance with the still respectable growth. However, like its computing computing clouds, Amazon called capacity restrictions as a gate factor for faster income growth. “I think we can grow faster if we were unlimited. I predict those restrictions really start resting in the second half of ’25,” Jassy said in the call. Sales in AWS may have come to a touching light, but the performance of operating income was better than projected thanks to an increase of 732 points in the functioning margin. As we have noted earlier, the 200 basic margin profits are due to the impact of a favorable accounting change. Other large margin improvement executives are unlocking efficiency in data centers and also lowering costs. As for the rest of the company, Amazon kept in revenue in online stores (7% income growth), physical stores (8% of revenue) and other buckets (17% of income), which includes sales of bids such as health care services, transport services and co-current credit card agreements. There were losses in third -party seller services (9%growth), reconciliation services (10%growth) and advertising services (18%growth) but nothing was negative. According to geography, North American sales increased 10% and we were pleased that we saw operating margins expanding to 8% from 6.12% last year. In the international segment, Amazon’s income increased 8% and that was a slight loss, but operating revenue was a big beat. International turned into a profit in all four quarters of 2024. One of the great promoters of Amazon’s margin this year was a “cost to serve” its customers. The regionalization of its US network has been a great victory, reducing costs and speeding up of transport time. It reduces costs and is less expensive to meet. $ 26.3 billion in the fourth quarter which was higher than $ 22 billion rated. Most of these investments will go to support AWS demand and technology infrastructure. “Most of that hats spending is in that for AWS. The way the business AWS works and the way the cash cycle works is to grow, the more we lids we finish the costs because we have to We provide the data center and hardware and chips and network equipment ahead when we are able to make money, ”Jassy explained. Now we can confirm that clubs names Meta platforms, Microsoft, Alphabet and Amazon have all talked about growing their Capex programs and this should ease concerns about a break in the expense of chips made by the Nvidia Club for Cause of Chinese start he with low cost deepseek model however, Amazon also spoke with his sewage of he silicon tranium 2 and graviton chips. “Most accounts of it are driven by nvidia chips, and we obviously have a deep partnership with Nvidia and will as long as we can see in the future. However, there are not so many AI generating applications – . . . Miss in the middle point of $ 16 billion and high range of range compared to $ 18.5 billion. (Jim Cramer’s charity is Long Amzn, NVDA, Meta, Googl, Msft. See here for a full stock list.) As subscriber of CNBC investment club with Jim Cramer, you will receive a trade alarm before Jim To make a trade Jim waits 45 minutes after sending a trade alarm before buying or selling an action in his charity portfolio. If Jim has spoken of a CNBC TV action, he waits 72 hours after issuing a trade alarm before executing trade. The above information of the Investment Club is subject to our conditions and conditions and the privacy policy, along with our denial. No obligation or task of trust exists, or is created, thanks to receiving the information provided with respect to the investment club. No specific outcome or profit is guaranteed.
Amazon logo in an exterior brick building, San Francisco, California, August 20, 2024.
Smith Collection | Gado | Archive Photos | Getty Images
Amazon The shares fell approximately 4% on Thursday evening, regardless of the e -commerce and the Cloud giant who reported a fourth quarter stronger than expected after the closing bell. Market participants during prolonged trading dealt with a prediction of the first quarter of 2025 that lost estimates and a plan of capital expenditures greater than expected. However, we do not see any articles like changing theses.