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To put this in some global perspective... Alibaba's one day sales event "Singles Day" last November grossed almost half that amount (i.e. $30B). Note: Alibaba's operating margins are approx. 30%.
If you believe their numbers. Many do not.
$14B in goodwill! Crazy.
That doesn't sound super unreasonable to me. Imagine if Amazon suddenly was a different company with a different name, holding everything else the same. How would this affect cashflows and sales? The difference in sales between this hypothetical company and Amazon is essentially what goodwill is. $14B sounds okay when you think about it like this.
If you have $1bn in assets, and you sell to my company for $2bn, $1bn is recorded as the assets bought and the other $1bn has to be recorded somewhere - and that somewhere is 'goodwill.'
Later, if the acquisition turns out to have been a bad idea, and what I bought from you was worth only $1.2bn, I will record an $800mm 'goodwill impairment' that would be a loss on my income statement and 80% of that goodwill would no longer be recorded as an asset.
Proof I have no idea how the stock market works: “Wow, that’s insane, their stock must have popped back over 2k because of this news!” checks ticker “Down 2.5% after hours...?”
As always, it's due to the results being below Wall St estimates that are already priced into the stock which is still trading at an insanely expensive 100 P/E ratio.
To put this in some global perspective... Alibaba's one day sales event "Singles Day" last November grossed almost half that amount (i.e. $30B). Note: Alibaba's operating margins are approx. 30%.
It is very annoying because the discounts are usually 1-2% (again as a westerner, may well be different for Asia) and it means you might have to wait a week or two for the product to ship.
I have asked stores if they can bill me full price and ship immediately and they say no.
So its really a marketing con to consolidate one or two weeks worth of sales into one day and then proclaim they had such a huge salsa day.
Imagine if Amazon billed two weeks of sales right on Black Friday. The numbers would be insane.
Proof I have no idea how the stock market works: “Wow, that’s insane, their stock must have popped back over 2k because of this news!” checks ticker “Down 2.5% after hours...?”
The company’s second-quarter profit rose 3.6% from a year ago to $2.63 billion after more than doubling last quarter. It missed analysts’ consensus estimate. Amazon had posted its best-ever profit the previous four quarters."
https://www.wsj.com/articles/amazons-streak-of-record-profit...
Earlier quoted context omitted.
As always, it's due to the results being below Wall St estimates that are already priced into the stock which is still trading at an insanely expensive 100 P/E ratio.
That ratio is unreliable because of how they invest so much in future growth. Those capital and R&D expenses will not be around forever.
Earlier quoted context omitted.
Revenue is up 20% year over year. The growth is real, not just a goal.
Only 20% is why the stock is down after hours, at 100 P/E AMZN is speculatively priced where they're expected to achieve infinite growth until they deliver financials that justify their valuation which Investors are betting on to happen before they hit any growth ceiling. There's also no room for an economy downturn which expensive stocks like AMZN are extremely volatile to.
Earlier quoted context omitted.
That doesn't sound super unreasonable to me. Imagine if Amazon suddenly was a different company with a different name, holding everything else the same. How would this affect cashflows and sales? The difference in sales between this hypothetical company and Amazon is essentially what goodwill is. $14B sounds okay when you think about it like this.
Goodwill is the accounting balance recorded when a company buys another company for more than the value of its assets. If you have $1bn in assets, and you sell to my company for $2bn, $1bn is recorded as the assets bought and the other $1bn has to be recorded somewhere - and that somewhere is 'goodwill.' Later, if the acquisition turns out to have been a bad idea, and what I bought from you was worth only $1.2bn, I w…
Earlier quoted context omitted.
Yet Alibaba's revenue for all of 2018 was $55B USD, compared to $232B USD for Amazon. I see that one day sale thing appear in many mentions of Amazon and it might be a little...misleading.
Am I missing something or are Alibaba seriously making more than half their annual sales in one single day?
Earlier quoted context omitted.
Only 20% is why the stock is down after hours, at 100 P/E AMZN is speculatively priced where they're expected to achieve infinite growth until they deliver financials that justify their valuation which Investors are betting on to happen before they hit any growth ceiling. There's also no room for an economy downturn which expensive stocks like AMZN are extremely volatile to.
Growing 20% at Amazon's size is why the stock is worth so much. Almost all companies have slowed down long before this point. Amazon is still growing like a late stage startup. It's really a remarkable feat.
FB Growth 28% YoY, P/E 26.51, Mkt Cap 573B
GOOG Growth 19% YoY, P/E 25.90, Mkt Cap 788B
MSFT Growth 12%, P/E 27.69, Mkt Cap 1.07T