Market and
partners news

Uncategorized
Analysis of Amazon.com Inc.

Analysis of Amazon.com Inc.

3 August 2022

Amazon: Betting on cloud services

The Amazon giant probably doesn’t need a special introduction. During the corporate reporting season in the USA, the parameters of Amazon stand out – and clearly deserve attention.

Amazon’s key financial indicators in the second quarter of 2022 are as follows:

  • revenue +7.2% YoY to $121.2 billion with a forecast of $111.8 billion;
  • Amazon Web Services revenue +34% YoY to $19.7 billion, above expectations of $19.4 billion;
  • EPS -$0.2 per share versus $0.12 forecast.

Negative net adjusted profit is bad news for the company, but the efficiency of the AWS cloud division, together with the productive work of e-commerce areas, have shown the ability to generate income even in conditions of rising inflation. Perhaps this is what will now become a key factor for business. 

Strengths of reporting:

  • controlled growth of spending on the execution of orders +14%, at the level of 2021;
  • revenue above expectations;
  • effective share buyback program;
  • the trend towards reducing the number of personnel and excess warehouse space;
  • potential in the direction of advertising sales.

The company can make an effective bet on the development of cloud services and their maintenance capacities. 

There are practically no risks – the business has gone through the entire category of problematic issues and worked out each of them. The global risk is now the same for everyone – the recession in the US economy and its consequences.

The consensus estimate for Amazon shares suggests growth to $160-162 in the near quarter and $180 in the year ahead. 

The daily trading chart of Amazon shares shows that the MACD indicator is growing in a positive area and strengthens the buy signal. The Stochastic oscillator is also growing in the positive zone and confirms the buy signal.

Send an application

    Full Name
    Phone
    Additional
    ARAVANA Capital management
    3 August 2022
    Macro overview of the current week

    China Stocks: Buying for the future US hedge funds are buying up Chinese stoc...

    Money transfers abroad via SFP: attention to the Central Bank commission

    A lawyer will always understand a lawyer, but will ordinary people understand...

    Golden Dubai visas: an ideal "safe haven"

    Vague prospects, unclear expectations and constant doubts about the future — ...

    Private flight: reliable, fast, fascinating

    In the end, everything consists of impressions. A flight by a private jet of ...