
Amazon.com Announces Second Quarter Sales Up 39% to $52.9B - mrep
http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-newsArticle&ID=2360348
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chollida1
Pre Earnings:

\- sort of anti Tesla from wallstreet perspective as only three of the 55
analysts covering the company have a hold-equivalent rating, and none
recommend selling

\- curious to see how ot reacts given that facebook just got beat up, self
inflicted and deserved, over the past few days.

Numbers: \- Q2 revenues of $52.9 billion, up from $51.0 billion previous
quarter. analysts estimates of $53.35 billion.

\- EPS $5.07, Est. $2.49

\- Net Sales $52.9B, Est. $53.35B

\- operating income $2.98 billion, estimate $1.71 billion

\- AWS net sales $6.11 billion

\- Amazon Web Services net sales +49%, assume this is the market growing as
Azure is really killing it right now and google cloud is doing respectible at
the moment.

\- smaller platform providers should at this point be considering their life
span to be under 5 years and probably closer to 2 years.

Other:

\- Continue to focus on Alexa, must really believe that loosing this market to
Google will serverly harm the company because it can't possibly be returning
any value based on what they spend on it

\- Bezos just added about 5 Billion in networth to jump to $155 Billion

\- probably won't mention Toronto's chances of getting HQ2, almost certainly
better for city to not win and give no concessions than to win and give up
alot in terms of tax and land concessions to amazon. Good chance that the city
that gets HQ2 loses in the long term because of it.

\- Prime membership count continue to rise. Last prime day was their largest
ever.

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the8472
> smaller platform providers should at this point be considering their life
> span to be under 5 years and probably closer to 2 years.

At least in price there still is competition. Scaleway seems to be 3 to 4
times cheaper on x86 with comparable nodes and even more if you choose arm, at
least when you compare on demand pricing.

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1stranger
Obviously I'm in the minority based on their success but after the latest
Prime rate increase I've mostly given up on Amazon. Part of it is just the
terrible UX. Compare trying to watch Prime video with going to netflix.com.
The retail website is incredibly noisy. There's all the 3rd party cruft to
sift through (the things not sold by Amazon) and the worry about counterfeit
products. AWS UI is always cluttered and feels 10 years behind the times
compared to Google cloud.

Basically Amazon has succeeded in spite of its terrible UX (IMO) but I'm
personally tired of it.

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germainelol
Yeah, I definitely find myself buying from Amazon less often now. I shop
around elsewhere as it's more user-friendly and only go to Amazon if I happen
to search for a product and see it's cheaper on Amazon.

Before, a lot of people would have Amazon as their go-to "Google" for anything
shopping related, but I don't think so anymore.

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mrep
> Before, a lot of people would have Amazon as their go-to "Google" for
> anything shopping related, but I don't think so anymore.

The fact that their sales are up 39% kind of disagrees with your experience.

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samfisher83
Over last 6 months aws made money than the entire retail business.

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chriselles
It would appear AWS is the entire profit Center of Amazon.

With Amazon retail business being run as a non profit, until such time as
conditions compel Amazon to raise prices higher.

If Amazon’s shareholders allow Amazon to continue running retail as a non
profit(as they have for over 20 years), then I think this will continue until
Amazon maxes out at whatever the ceiling retail market share is for a single
company.

But I think Amazon’s non profit retail land grab could continue for another
10-20 years.

Besides shareholders stopping Amazon, I envisage the only things that can stop
the Amazon Borg Cubes are:

1)Government regulatory “shields” being raised

2)Web/Cloud Services getting ruthlessly competitive and margins plummeting.

Just my personal thoughts.

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zenbane
Isn't this supposed to be illegal? I was once taught that anti-trust laws were
put in place to prevent predatory pricing. Amazon doesn't need to make any
profit on retail as long as AWS can support it.

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tedunangst
But, but, but.. Amazon will never make a profit!

~~~
eat_veggies
has anybody ever said this in the past five years

~~~
thephyber
Yes. There is still a legion of critics who complain that AMZN doesn't return
profits to shareholders rather than reinvest it in capital improvements. Even
while their stock price keeps growing at an incredible pace.

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booyaslacka299
The cynic in me is curious how of this is due to the knock offs breaking/dying
in a few months, and people just automatically rebuy.

Sure you can increase your widgets sold stats by selling cheap, disposable
widgets. Doesn’t seem like the best long term social and environmental process
to use.

