Amazon is doing really well and making more money than people thought. They have a video service called Prime Video that might help them make even more money. They also have something called AWS, which helps other businesses with their computer stuff. People think Amazon will keep growing and make more money in the future. Read from source...
- The title is misleading and sensationalist, as it suggests that Amazon will have another quarter of significant growth and profitability due to Prime Video and AWS. However, the article does not provide any concrete evidence or data to support this claim, nor does it acknowledge any potential risks or challenges that Amazon might face in the near future.
- The analyst quoted in the article, Kurnos, seems to have a vested interest in promoting Amazon's stock and driving up its price, as he is "in line with the street" and "modestly ahead of the midpoint of guidance." This implies that he may be following the herd mentality and not questioning the underlying assumptions or logic behind his predictions.
- The article also relies heavily on qualitative factors, such as "consensus", "commentary around the consumer", and "expected further share gains", without providing any quantifiable or verifiable measures of these aspects. This makes the argument less convincing and more subjective, as it does not demonstrate a clear link between Amazon's performance and its market value.
- The article does not address the issue of Amazon's competition in the online retail and cloud computing markets, nor does it consider how changes in consumer preferences, regulations, or technology could affect Amazon's future growth prospects. This leaves a gap in the analysis and makes it less reliable as an investment guide.
Key points from the article:
- Amazon is set for another upside quarter
- Analyst highlights Prime Video and steady AWS growth as potential drivers
- Consensus does not seem to have incorporated Prime Video into numbers
- AWS expectations seem reasonable heading into a year where generative AI cloud costs could help drive an early reacceleration
- Kurnos maintains his favorable view of Amazon despite the rapid share recovery
- The timing of the AWS reaccel could be a modest concern, but consensus looks reasonable enough from Q4 FY23 to Q4 FY24
1. Prime Video is a significant growth opportunity for Amazon, as it has not been fully incorporated into consensus estimates by analysts. This means that there is potential for upside surprises in the revenue and earnings numbers from this segment, which could boost the stock price. However, there are also risks involved, such as increasing competition from other streaming services like Netflix or Disney+, changing consumer preferences, and content costs. Investors should monitor these factors closely and adjust their expectations accordingly.
2. AWS is a key driver of Amazon's growth and profitability, and the analyst highlights its potential for reacceleration in 2023 due to generative AI cloud costs. This could provide a further tailwind for Amazon's stock price, as well as its overall competitive position in the cloud computing market. However, there are also risks involved, such as increased competition from Microsoft Azure and Google Cloud, regulatory challenges, and cyclical fluctuations in demand for cloud services. Investors should consider these factors when evaluating Amazon's growth prospects and valuation.
3. The retail segment is expected to post another upside revenue quarter despite ongoing discounting, according to the analyst. This suggests that Amazon has a strong market position and customer loyalty, which could translate into higher sales and margins in the future. However, there are also risks involved, such as macroeconomic headwinds, supply chain disruptions, and changing consumer behavior due to the pandemic or other factors. Investors should weigh these risks against the potential rewards of investing in Amazon's retail business.