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Are you interested in $AMZN Earnings, wondering about how good they are?
or what to expect from the upcoming earnings report.
You probably are if you are watching this video!
I am here to tell you the most interesting facts about $AMZN Earnings, that you can use straight away!
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Over the years, Amazon expanded tremedesly from just a marketplace for the literature,
into a company that offers almost everything. Starting from the excess cloud computing
and ending by grocery stores.
With Jeff Bezos becoming both CEO of the company and one of the richest person in the world.
For most of its existence, Amazon rarely shows earnings worth mentioning,
but what can YOU expect going into their upcoming earnings report?
Well, no one can really tell you when they believe that Amazon will capitalize on their massive market presence
to drive the incredible profits everyone expects.
Mostly, they simply believe in the company's overall story,
and that its past peformance will predict the future.
A look at their current concensus forecast of $2.49 EPS would be a bit misleading since their High end is $3.09,
and their low end is $1.53, wide enough to fly a jet plant through.
This makes some analysts believe that the company will acquire more businesses,
others believing they have pushed down their costs per unit,
and that the mix of revenues will be markedly changed.
Analysts covering Amazon won't change their opinions until after Amazon will publish their earnings.
With knowing this fact an you can do your own homework and pick up on any necessary updates
long before the analysts publish their opinions.
Still, it is worth looking at interesting insights and opinions that can give you fresh ideas and perspectives.
Amazon remains unpredictable. The company regularly swung between profits and losses.
Also, since the company invests into almost everything starting from drone technology,
and ending by an expansion of its logistics arm,
it is not a surprise that it has a lot of additional revenue and income streams.
Recently, the company announced a venture by which individuals can become Amazon delivery businesses,
complete with branding and training.
What remains unknown is whether this simple venture will enable another aspect
of Amazon's overall business, or become a profit stream by itself.
Amazon tries to dominate in every sphere possible.
Talking about Amazon Prime- the company has made massive strides into media delivery.
Similar to Netflix, the company always looking for a new media,
accepting failure as a mean for finding something what works with their customers.
Recent reports suggest the company has its eye on CVS and Walgreens as a way of entering the healthcare space.
Amazon's foray puts it together with JP Morgan and Berkshire as a way to create a healthcare company
that is "free from making profit incentives and constraints"
I also want to cover Amazon home technology.
Amazon's Alexa brought the company into direct competition with Apple, Microsoft,
and other companies which are into the internet of things.
Their AI technology, coupled with an open programming system,
allowed developers to create customized applications for their modules.
Now, Alexa can control everything in your house.
Starting fromt your Nest temperature switch, to a Phillips lighting.
I decided to review backtest of Amazon's earnings per share (EPS) ratio and price to earnings ratio (P/E)
relative to other companies in this sector.
In order to determine, whether these metrics can provide better
returns than a simple buy and hold strategy for Amazon
It turns out that since $AMZN didn't produce earnings for much of its lifetime.
looking at their earnings did not provide any good returns when backtested.
Most of the analysts point to Amazon's revenue when it comes to better anlysis of the buisiness.
But after the sales quarter to quarter comparison it provides a reasonable metric for doing as well as buy and hold.
Yet, when you try to incorporate transaction costs into the mix, the strategy isn't worth pursuing.
Along with the NASDAQ, Amazon's share prices hit record territory, putting in new all-time highs nearly every day.
With such a remarkable run Amazon has been potentially set up for failure.
Leading into the company's earnings, we can get a clue to the overall sentiment by
watching a lot of the competitors.
For example, stocks like Netflix and Google can provide a better understanding
of how these companies will be treated at their earnings announcements.
You can't compare Amazon company to others, both in the business world and in the stock market.
Investors bet each and every day that the company will dominate whatever industry it enters,
As the company grows at an amazing pace, the companie's costs grow with them.
The company is widely owned by institutional and retail investors,
with consumers picking up packages at their doorstep almost every day.
The company continues to innovate in the way it delivers to current customers,
as well as expanding its buisiness scope.
From 2010 to 2014 2010-2014 investors wondered, whether the company got ahead of itself
and was maintaining a sustainable business that would endure.
Yet, those who stayed with the company were well rewarded.
So investing in this company requires a lot of attention.
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