Amazon.com Announces Second Quarter Sales Up 20%

Post by fbreton » Fri, Jul 26, 2019, 9:02 AM UTC

HugThem wrote: post #121

wutbrodo wrote: post #108

Earlier quoted context omitted.

This assumes that people operate only on expected value and don't care about variance at all, which is incorrect empirically, theoretically, and intuitively. The premium you pay for reducing variance is called a "risk premium", and it follows pretty trivially from the diminishing marginal utility of money (though there are many other ways to derive/explain it). This is the entire reason that insurance exists as a pro…

Well, if you pay me more then $0.05 for the $0.6/-$0.5 coin flip, I will happily sell you some. How much do you want?

Post by fbreton » Fri, Jul 26, 2019, 9:14 AM UTC

selestify wrote: post #101

freehunter wrote: post #62

Earlier quoted context omitted.

This is an important point. The stock market doesn't try to reward companies with higher share prices, it tries to find the correct price and stabilize there. If your company is expected to do well, that performance is already built into your stock price. Doing exactly as well as expected, even if you've doubled your profits, won't cause your share prices to change at all. Because everyone already expected you to do…

What about uncertainty? Surely the removal of uncertainty would cause a movement in the price even when a company performs exactly as predicted?

Post by hef19898 » Fri, Jul 26, 2019, 10:00 AM UTC

carlsborg wrote: post #5

Two interesting points: 1) Close to 70% of Amazon operating income once again can be attributed to AWS. Consolidated operating income: $3,084 m AWS operating income: $2,121 m 2) AWS revenue was $8.3B for the quarter, 37% more than the same quarter last year.

Post by rocgf » Fri, Jul 26, 2019, 10:16 AM UTC

axaxs wrote: post #97

meowface wrote: post #81

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AWS is basically "run your entire company's engineering as a service" now, and they've done a good job at it. It's not at all easy to compete with such an integrated and battle-tested platform (other than on cost; AWS can be pretty expensive).

This is absolutely true, sure, but the UX is dreadful. If someone like, say, DigitalOcean who has nice design spent the money to actually compete, I'd move in a heartbeat. Google is a nonstarter, and Azure is a 'maybe'. Most people use a few key services. Everytime I log in, I'm slammed with 200 tiny hyperlinks.

Post by kgwgk » Fri, Jul 26, 2019, 11:07 AM UTC

jjeaff wrote: post #94

MR4D wrote: post #82

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P/E is NEVER useless. For instance, if a company misses on earnings, then maybe it was an outlier - an odd quarter of sorts. But if you do it a few times over, then you are not the growth company you thought you were, and your 100:1 p/e will come crashing down to join everybody else (albeit maybe on the high side) somewhere in the upper 20’s or in the 30’s. But here’s the key - to do that, a stock would have to lose…

But you are assuming that the end goal of the company and purpose of buying the stock is to participate in "earnings" in the form of dividends. But that is no longer the MO of many public companies now. The goal appears to just eternally grow the stock price and allow share holders to cash out in the form of appreciated shares which get a preferable capital gains tax treatment. Occasional earnings are just there to p…