Amazon (AMZN) / Jeff Bezos 02 (Nov 18 - Dec 26)

[winston]

not vested

Amazon: Investment Cycle Will Pay Off Eventually, Says Morgan Stanley

Amazon is now “significantly slowing its forward build”.

Fulfillment utilization will be getting better (increasing ~8% year-over-year in 2023) with units/shipping square foot “stabilizing” by next year.

Wall Street remains bullish on Amazon. One Hold and Sell, each, are countered by 36 Buy ratings and all coalesce to a Strong Buy consensus rating. The average target is slightly above Nowak’s objective, and at $180.13, is set to yield returns of ~46% in the year ahead.

Source: TipRanks

https://finance.yahoo.com/news/amazon-i ... 53819.html

[winston]

vested

Amazon quietly buys land across the US, builds property empire

Between 2020 and 2022, Amazon tripled the amount of built industrial space it owns in North America, according to company filings.

The company also overbuilt during the pandemic and is saddled with too much warehouse space, now that the surge in online shopping has decelerated.

“People will buy more on Amazon when they see they can get it in five hours instead of in two days.”

Amazon has spent at least US$2.2 billion acquiring land or properties slated for redevelopment in the past two years.

The new facilities can cost twice as much to build as typical warehouses, which currently run about US$200 per square foot.

Source: Bloomberg

https://www.businesstimes.com.sg/compan ... rty-empire

[winston]

vested

Amazon Says Drones Are Finally Ready to Fly

by ELLEN CHANG

Amazon Prime members who live in Lockeford, California, will be the first customers to receive their deliveries from a Prime Air drone.

"Using this system, our drone can identify a static object in its path, like a chimney. It can also detect moving objects on the horizon, like other aircraft, even when it’s hard for people to see them. If obstacles are identified, our drone will automatically change course to safely avoid them."

Source: The Street

https://www.thestreet.com/technology/am ... 2Bto%2BFly

[winston]

vested

Why Amazon.com Has Lost Its Way

by Jon Markman

AWS claims 90% of the Fortune 100 use its services. It has reported the annual sales run rate is $74 billion. About a third of that number trickles to the bottom line as profits. And despite its size, the business continues to grow at better than 30% per year.

Unfortunately, the rest of the business is sputtering.

Jassy spent lavishly in 2021 to take-on new warehouse capacity to meet the demand during the pandemic. He also raised wages and ramped up investment in safety protocols to keep warehouse workers healthy.

Most of the 15 shareholder proposals being tabled on Wednesday will hurt future profitability.

Source: Forbes

https://www.forbes.com/sites/jonmarkman ... d197194a3a

[winston]

vested

Amazon: Concerns Are Already Baked Into the Stock, Says 5-Star Analyst

Truist has a list of reasons why Amazon’s prospects are sound. These include:-
1) sustainable leadership position (~40% share) in the US, amid a secularly growing ecommerce segment;
2) leadership position in cloud (30%+ share) with growth in the early innings still;
3) best-in-class customer experience with high NPS scores,
4) growing digital advertising footprint, making it the #3 player behind GOOGL (Buy) and META (Buy);
5) a massive logistics network for a speedy 1-2 day delivery, now being made available to off-Amazon merchants through a potentially powerful Buy with Prime.”

Concerns are already “baked into the current valuation,” while the ironing out of efficiency kinks continues, and the prospect of further growth for AWS and Advertising “bode well for profitability.”

To this end, Squali rates AMZN shares a Buy, along with a $175 price target.

Looking at the consensus breakdown, 1 Hold and Sell, each, are countered by 36 Buys, making the stock a Strong Buy amongst Wall Street’s analysts.

Source: TipRanks

https://finance.yahoo.com/news/amazon-c ... 02576.html

[winston]

vested

Amazon Cloud Unit on Course for $3 Trillion Value, Redburn Says

by Subrat Patnaik

Amazon.com Inc.’s cloud-storage business is on a clear path toward a $3 trillion value, almost triple what the whole company is worth now in the stock market,

Amazon Web Services’ revenue jumped 37% to $18.4 billion in the first quarter even as the company’s core e-commerce business saw a decline in sales. “

The Amazon cloud unit is better positioned than rivals run by Microsoft and Alphabet Inc. because it has lower costs and better technology.

Amazon Web Services accounts for less than 20% of Amazon’s revenue but will contribute all of its earnings this year.

Source: Bloomberg

https://finance.yahoo.com/news/amazon-c ... 30031.html

[winston]

not vested

Amazon Stock Could Drop 50% Without Strong Prime Day

by Douglas A. McIntyre

Prime Day: July 12 and 13.

Amazon faces two hurdles. The first is competition. Walmart and other large brick-and-mortar retailers have begun to have success online.

The other hurdle is the headwinds of a recession.

Started to downsize its huge delivery infrastructure to save money.

Source: 24/7 Wall Street

https://247wallst.com/retail/2022/06/30 ... prime-day/

[behappyalways]

Amazon Cancels Or Delays Plans For At Least 16 Warehouses This Year
https://www.zerohedge.com/markets/amazo ... ouses-year

[winston]

vested

This Stock Has a Strong Base and Is a Buy Today

by Nicolas Chahine

The company almost tripled revenues and net income since 2019.

Profitability may stumble a bit with the higher gas prices but they can adjust. With metrics this strong, by definition dips remain buying opportunities

Source: Investor Place

https://tradesoftheday.com/2022/07/07/t ... buy-today/

[winston]

vested

Private label

Amazon (AMZN) is reducing the number of items it sells under its own brands by well over half, and the company has discussed the possibility of exiting the private-label business entirely.

Disappointing sales for many of the items has led the online retail behemoth to scale back certain household brands, but the broader move is aimed at alleviating regulatory pressure, according to the WSJ.

In recent years, U.S. lawmakers and the European Commission have blamed Amazon for giving advantages to its own brands at the expense of products sold by millions of other vendors on its site.

Backdrop: Amazon’s private-label business began in 2009 with consumer electronics, but quickly expanded into other categories. As of 2020, the collection encompassed 243,000 products across 45 different brands that range from home goods to clothing (think Amazon Basics, Solimo, Goodthreads, etc.). Amazon maintains that its house brands only account for about 1% of its retail sales, and that it competes fairly and in a way that benefits its customers.

The retail giant announced that members purchased more than 300M items worldwide during Prime Day 2022, making it the single biggest event in its history.

Source: Seeking Alpha