Amazon.com, Inc. ($AMZN) Earnings (Q1 FY22)

Amazon.com, Inc. ($AMZN) Earnings and Opinion:


Amazon is a company in the Consumer Cyclical sector and operates in the Internet Retail industry. The company engages in retail sale of consumer products all around the world. Amazon was founded in 1994 and is currently headquartered in Seattle, Washington. The company was first traded on the stock market in 1997.

Amazon EPS and Revenue 

  • EPS of -$7.56 missing expectations of $8.49
  • Revenue of $116.44B missing expectations of $116.52B
Amazon Q1 Financial Highlights:
  • Revenue was up 7% (YOY)
  • Net loss of $3.8B
  • Operating income of $3.7B
  • Operating cash flow of $39.3B, decreased by 41% (YOY)
Opinion:
Amazon tanked after reporting this quarters earnings. Investors seemed to expect a profit reported, but that was not the case as Amazon reported a loss of $3.8B. The CEO claimed the bad quarter on the war and the pandemic. These challenges effect a company like Amazon more so than a lot of other companies. Amazon is constantly moving product and goods all around the world. When supply chain issues arise or a war starts in a certain region that you provide services in, the company then starts losing in that category. We are seeing this with Amazon especially because the company lost Jeff Bezos recently and the new CEO seems to have been facing several big challenges with the company. The positive side of all of this is the cloud service that Amazon provides. It seems to be on a solid growth track still and is now one of the leaders in cloud services in the world. The company is looking for ways to return back to when their productivity was extraordinary and it seemed as if it was going to turn into a monopoly. Amazon will look to head back to its normal ways once we get some clarity from the economic challenges currently going on. For the mean time, the stock is now at a discount and trading at some quality valuations. Although it does seem as if investors are sort of shunning this company. We can't take away how innovative this company really is and how much potential they still have. I'm looking for the CEO to handle some of these major problems internally in a positive manner and start working toward their optimal production levels again. I really like this stock right now and can see some solid upside for the future, especially if they keep up the great work with AWS.

*Information from Amazon, Yahoo Finance, and Google
*Estimates from Zacks

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