Update 16:00 EDT: The market is no closed Amazon could post at any minute. Shares ended down by around 2 percent today after a brief rally into the close. Let’s see what Jeff Bezos has for us.
Update 16:03 EDT: Amazon shares are up strongly in after-market trading before the numbers are out.
Update 16:09 EDT: Sales come in at $23.18B way ahead of Wall Street.
Update 16:11 EDT: That’s a surprise profit of 19 cents. Wall Street thought they’d lose 13 cents.
Update 16:12 EDT: Shares are up to $550 after hours. Amazon is now worth more than Wal-Mart!
Update 16:16 EDT: The conference call is at 17:00 EDT. We’ll see how Amazon turned a profit then.
Update 16:18 EDT: Jeff Bezos focused on the small stuff in the press release. Did you know they received 11 Emmy nominations? He’s going to have a field day with Wall Street on the call.
Update 16:20 EDT: Amazon is just playing with us at this stage. Forecast for the next quarter calls for a loss, or a profit. Between 540 million of a loss and 70 million of a profit. Jeff Bezos wil pick the number on September 30.
Update 16:22 EDT: A $92 million profit. Amazon’s market cap is up by more than $30 billion after hours. Who’s valuing this beast?
Update 16:24 EDT: https://www.youtube.com/watch?v=7uxfRDL-JzM
Update 16:25 EDT: We’ve got to wait for the call at 17:00 now, but it’s probably heavily based on the above video so you can skip it.
Update 16:27 EDT: Shares are just up to $565. Analysts are going to have a headache tomorrow morning trying to figure this one out. Our forecast for the third quarter: 99c loss, rinse and repeat.
Update 16:28 EDT: That’s all from us for now. We’ve got to dive into the report, and see where Amazon got that profit out of. It might have come with those Emmy nominations.
Amazon.com, Inc. will release its earnings numbers for the three months through June after the market closes on Thursday. Wall Street is expecting the firm to make its usual loss, but the numbers under the hood are going to be of great interest. The firm’s margin and sales numbers in the cloud business will likely be the most important.
Wall Street is looking to see a loss of 13 cents per share for the second quarter on revenue of $22.39B. In the same three months of last year Amazon made sales of $19.35B and turned that into a loss of 27 cents per share. Last year’s numbers were made by the failure of the Fire Phone, which will be absent this time around,
We’ll have all the numbers live once they hit. In the mean time, here’s a look at what to look for in the numbers.
Amazon Web Services is key
Amazon Web Services, the cloud business that Amazon is growing, is the most talked about part of the firm heading into the release of the numbers. Traders are looking for high margins and huge growth in the segment this time around.
Last time Amazon revealed its numbers AWS had a 17 percent operating margin, much higher than anything else Amazon has to offer. Traders will be looking for both that number and the total size of sales through the segment to jump in this afternoon’s report.
Will Amazon turn a profit?
There have been some rumblings that Jeff Bezos, CEO at Amazon , might be willing to institute a little cost discipline at the firm. Google revealed more of that than Wall Street was looking for in its recent report, and Microsoft has been following a similar tack.
For many of the the pure tech firms it seems that the days of spend it now and worry later are over. Wall Street is looking for them to make money in order to keep shareholders happy. If Amazon tried to make a profit it could make a big one, but the firm insists on investing almost every penny.
It’s not likely that Amazon will report a surprise profit this time around, but with AWS doing so well, the firm might consider changing its policy in the medium term. Any indication of that this afternoon could drive the market wild.
Wall Street backs Amazon
Shares in Amazon.com were down on Thursday as traders cashed out in order to avoid the volatility of earnings day. The firm has been know to send its stock price reeling after it reveals numbers, and tech trader Todd Gordon is looking for a 9 percent move this time around.
Overall, however, Amazon has had big fans in the market in recent months. The firm’s shares have gained more than 22 percent in the last three months of trading, and more than 7 percent in the last month. After this afternoon’s earnings, it’s not clear what direction shares will go. With Amazon, a bigger loss could mean a jump if it’s packaged in the right way.