Amazon (AMZN) Stock - This Is Really Bad

TL;DR

Amazon's Q3 earnings miss revenue expectations, with a slowdown in growth in its AWS segment and operating losses in its North American e-commerce business.

Transcript

yeah so those exploding sounds that you might hear in the background of this video just excuse those that's my IRA portfolio blowing up after Amazon reported their Q3 earnings and the stock is down over 19 in the after hours that was after being down four percent during the regular trade and over the last year down 34 in the after hours Amazon trad... Read More

Key Insights

• 🥺 Amazon's Q3 earnings disappointed investors, leading to a significant drop in its stock price.
• 🧑‍🏭 The slowdown in AWS growth and operating losses in its North American e-commerce business are concerning factors for Amazon.
• 🤨 Q4 revenue guidance fell short of expectations, raising doubts about the company's ability to maintain its growth trajectory.
• 🐕‍🦺 Subscription services and advertising services showed growth, alleviating some concerns.
• ❓ The acquisition of MGM Studios contributed to growth in the "other" segment.
• 💐 Amazon's cash flow statement presents a more positive picture, with increased operating cash flow.
• 🤨 The company's investing activities, including property and equipment purchases, raised concerns due to a negative cash flow.
• 🥳 Localization efforts, such as supporting third-party sellers, could help improve profitability for Amazon's e-commerce business.

Questions & Answers

Q: Why did Amazon's stock plummet after reporting Q3 earnings?

Amazon's stock dropped over 19% in after-hours trading due to disappointing Q3 earnings, including a slowdown in AWS growth and operating losses in its North American e-commerce business.

Q: What was the revenue growth for Amazon in Q3?

Amazon's Q3 revenue reached $127.1 billion, representing a year-over-year growth of approximately 14-15%.

Q: What are the concerns regarding Amazon's Q4 revenue guidance?

Wall Street expected Q4 revenue to be close to $155 billion, but Amazon's guidance falls between $140 billion and $148 billion, raising doubts about the company's ability to meet its growth targets.

Q: How did Amazon's different business segments perform in Q3?

Amazon's core e-commerce business in North America reported operating losses, while AWS experienced a slowdown in growth. However, subscription services and advertising services showed growth, along with the acquisition of MGM Studios boosting the "other" segment.

Summary & Key Takeaways

• Amazon's Q3 revenue came in at $127.1 billion, missing expectations by $370 million but still showing a 14-15% year-over-year growth.

• Concerns arise due to a slowdown in growth in Amazon Web Services (AWS) and operating losses in the North American e-commerce business.

• Q4 revenue is projected to be between $140 billion and $148 billion, falling short of Wall Street's expectations of nearly $155 billion.