Another Wall Street darling is set to report after the closing bell today. A company we talked about nearly every day in the late 90`s. A company that survived the dot-com bubble. A company that is up 33,000% since then and up about 90% last year.
Amazon has become a big competitor to Wal-Mart and Target and it is expected to see that trend to continue. Amazon Prime`s subscriptions have doubled in two years and they offer users free two-day shipping, cloud storage and streaming.
The Estimize Mean consensus calls for EPS of $1,64, three cents above the Wall Street estimate. Revenue expectations for $35,9B in-line with the Street`s consensus, and higher than guidance of $35,13B. Sales are expected to rise about 20% YoY.
I expect to hear more about their cloud computing platform which has become a new business segment in the company. Amazon Web Services (AWS), accounts for about 8% of total revenue, and the business is growing.
So are Prime time, which is a strong loyalty program for Amazon
s customers. They have free shipping and have the ability to stream and listen to music in the same package. Its been proved that loyal customers at Amazon Prime shop twice or more per month than non-subscribers.
Amazon said they added 3 million Prime subscribers before christmas day last year, and it isn
t slowing. If this continue, Amazon will end up having 50% of all U.S hoseholds subscribed to Prime in 2020, according to Macquarie Research. Thats awesome.
Amazon hired a record 10,000 people in Europe in 2015 which is taking its workforce above 41,000. This will continue, and Amazon is stepping up its investment plans in Europe this year. In 2016, they plan to hire more staff as it seeks to expand amid a stricter scrutiny of its tax, privacy and employment records.
Amazon is also planning to advertise during this year
s Super Bowl for the first time. An ad by «30 Rock» star <strong>Alec Baldwin</strong> and former National Football League quarterback <strong>Dan Marino</strong>. The ad will highlight Amazons Echo speaker and its voice-activated virtual assistant Alexa. What do you think will happen the day after that ad? The sales will skyrocket.
What`s peculiar about Amazon is the price earnings at 831,80! Wow!
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