Amazon's latest earnings slump, we're still bullish

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Nan Bambu

Amazon has released . third-quarter results, revenue growth but earnings decline, share prices fell, Thursday to 818.36 the price of the dollar closed. But we're still bullish, so let's make a prediction that Amazon's share price is up to $, and won't keep you waiting too long.

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Third quarter earnings

Amazon's third-quarter net revenue was 327 billion, operating profit of 5.75 billion, net profit of 2.52 billion, diluted earnings per share 0.52 , as of the end of Thursday, Amazon's shares fell 4.23 US dollar, at $ 818.36 . Why are we still bullish on Amazon's earnings narrowing and the fall in share prices? Three reasons:

The decline in profits stems from investment;

Have been focused on doing their own things do not mind investors disappointed;

Retail and IT is the two leading vertical industry giants to lead the future.

Take the investment, get the profit.

Amazon 's monthly operating cash flow grew significantly, while net cash flow declined, mainly due to the acquisition of property and equipment. It is worth mentioning that its investment also includes the cloud service "AWS"(Amazon Web Services) and the global launch of the Prime investment in member Services, and Amazon Studios released a series of new original film content investment and so on. The underlying cause of the decline in profitability is investment, and its investment will give it huge returns.

whether it is The public cloud services of AWS, or the original content of digital media, are new trends. Amazon has entered a lot of new fields by investing heavily, telling a big story for everyone. In fact, the current Amazon is a growth rather than a profit-making company, for investors, can take the investment, the profit to take down the Amazon more worthy of expectation!

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Revenue and profit performance since Amazon's IPO

Focus on doing their own things, do not mind investors disappointed

Amazon has long been a EPS are not ideal. One reason for the fall in the third quarter was that its earnings per share had failed to meet expectations. In the fourth-quarter outlook, investors disapproved of "uncertainty" in the company's performance, saying that Amazon did not know what was going to happen in the quarter, but that Amazon still gave the median net revenue of $437.5 below market expectations. In fact, it has been keeping EPS in a very low range, even on the margins of profit and loss, and does not mind investors ' disappointment.

then look at Amazon's gross margin, from2010years of22%, to .years of23%, last year's25%, and then to this year's near28%; has been continuously4years of moderate growth. Their revenues, even in2006tens of billions of dollars a year, still maintaining annual30%steady growth of the left and right. AlthoughEPSnot ideal, but with Amazon's revenue capacity to increase net profit by 10 times times, it is not difficult, and as an investor, more should see is its future.

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Amazon Stock Trend Chart attached

Two big vertical industry giants to lay the future

in Retail and It's two vertical industries, Amazon has always been firmly in the two major areas of dominance: one is the e-commerce platform, the second is the AWS Public Cloud market, and it is these two major advantages, laid its future!

as early as the year, there are statistics around the world about 20% independent users using Amazon's retail and auction site, the number of users reached 2.822 billion, ranked first in the world, North American market users accounted for the highest, 35.4%, the third quarter net sales of 188.7 billion, compared with the same period last year Billion dollar growth 26%. Through his vertical e-commerce platform, Amazon has built up a huge ecosystem that no one can afford to operate globally.

third quarter, Amazon Cloud services "aws "revenue reached 32.3 55 %, in fact, Any company that wants to adopt a public cloud will almost always give priority to Amazon, aws global active customer 2015 year 100 90% vmware after cooperation, aws Enter the hybrid cloud and start building the future. (about the future trend of hybrid cloud we've written two articles before, and we're not going to dwell on it.) )

over the past week, Amazon has traded up to $ 847.21 , a minimum of $ 474.00 . The third-quarter results were closed at $818.36, according to the closing price of Thursday, and Amazon's market capitalisation was about 3879.6 billion. But, with its ability, The stock price rises on the dollar and won't let everyone wait too long!

Note: About AWS and cloud computing We've written two articles: "VMware and the old enemy, Amazon , a smile: redefine hybrid cloud?" "and" The Secret behind strategic cooperation:VMware becomes an AWS channel provider? "Interested friends can be viewed according to the tip of the text.

This article consists of " IT strategists "original, reproduced please contact the public number for authorization.

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Amazon's latest earnings slump, we're still bullish