David VanderWaal, vice president of marketing for LG Electronics USA, left, and Michael George, vice president of Alexa, Echo, and Appstore at Amazon.com Inc., speak about the Amazon Alexa partnership with the LG InstaView Door-In-Door smart refrigerator during the company’s press conference at the 2017 Consumer Electronics Show (CES) in Las Vegas, Nevada, U.S., on Wednesday, Jan. 4, 2017. LG is seeking automotive alliances to accelerate autonomous driving, as well as acquiring artificial intelligence and robotics acquisitions to speed up its global expansion. Photographer: Patrick T. Fallon/Bloomberg
Amazon ($AMZN) is scheduled to release earnings after Thursday’s close (Feb 2, 2017). The social media giant hit a record high of $847.21 in 2016 and is currently trading near $835. The stock is prone to big moves after reporting earnings and can easily gap up if they report strong numbers. Conversely, if they miss, the stock can easily gap down like it did last quarter. To help you prepare, here is what the Street is expecting:
Earnings Preview:
Amazon is expected to report earnings of $1.41/share on $44.84 billion in revenue. Meanwhile, the so-called Whisper number is $1.44. The Whisper number is the Street’s unofficial view on earnings.
Company Profile & Various Businesses:
Here is a complete company profile and description of the various businesses courtesy of my friends at Thomson Reuters Eikon:
Amazon.com, Inc., incorporated on May 28, 1996, offers a range of products and services through its Websites. The Company’s products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. The Company has three segments: North America, International and Amazon Web Services (AWS). The Company’s North America segment focuses on retail sales of consumer products from sellers and subscriptions, through its North America-focused Websites, such as www.amazon.com, www.amazon.ca and www.amazon.com.mx. Its North America segment also includes export sales from its North America-focused Websites.
The Company’s International segment focuses on retail sales of consumer products, including from sellers and subscriptions, through its internationally focused Websites, such as www.amazon.com.au, www.amazon.com.br, www.amazon.cn, www.amazon.fr, www.amazon.de, www.amazon.in, www.amazon.it, www.amazon.co.jp, www.amazon.nl, www.amazon.es and www.amazon.co.uk. Its International segment includes export sales from its internationally focused Websites, including export sales from these sites to customers in the United States, Mexico and Canada. The Company’s AWS segment focuses on the sales of compute, storage, database and other AWS service offerings for start-ups, enterprises, government agencies and academic institutions.
The Company allows customers to access its Websites directly and through its mobile Websites and applications. The Company offers Amazon Prime, which is an annual membership program that includes shipping on a range of items, access to streaming of a range of movies and television (TV) episodes, and other benefits. It manufactures and sells electronic devices, including Kindle e-readers, Fire tablets, Fire televisions and Echo. The Company offers programs that enable sellers to sell their products and fulfill orders through its Websites and the seller’s Websites. It serves developers and enterprises of various sizes through AWS, which offers a set of analytics, applications and deployment services. It serves authors and independent publishers with Kindle Direct Publishing, which is an online platform that allows independent authors and publishers to choose a royalty option and make their books available in the Kindle Store, along with its publishing arm, Amazon Publishing. It also offers programs that allow authors, musicians, filmmakers, application developers and others to publish and sell content.
Competition:
Amazon competes with every retailer in the world.
Pay Attention To How The Stock Reacts To The News:
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news.
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