Amazon Q1/2022 [pdf]
Numbers:<p>- Q1 Operating Income 3.7B est 5.42B, wow, that&#x27;s a big miss<p>- Q1 Net Sales 116.4B vs Est of  116.43,<p>- AWS Net $18.4B EST 18.2B<p>- subscription sales<p>- operating margin 3.2% vs 4.7Est, that&#x27;s another big miss<p>- loss of 7.56&#x2F;share vs a profit of 15.79&#x2F;share a year ago, again highlights the danger of a very low margin business model that makes it up on volume, when all your inputs go up in price.<p>- their first quarterly loss in 7 years.<p>- international business was down a fair bit, both in profits and sales,  This is something to watch as US sales are probably not a growth area anymore and bulls were watching this areas specifically for growth.  Not only fail to grow here but to show a loss is concerning.<p>- their trailing 12M P&#x2F;E was 124 and their forward 12M P&#x2F;E is 55, so everyone expects far less growth in the future<p>Notes:<p>- looks like its the sales forcast that algos seem to hate<p>- reporting a loss for Q1 and projecting another loss for Q2, given that we&#x27;re long gone from the run at a loss to grow days of Amazon, this is something to watch.  Maybe people are finally starting to buy local again?<p>- starting to bring down other ecommerce companies which helps support the people buying in person thesis some analysts have been pushing<p>- From Bloomberg, Worldwide shipping costs jumped 14% to $19.6 billion. Meanwhile, revenue from online store sales dropped 3% and revenue from third-party sellers services increased 9%. Inflation is exposing the dangers of Amazon’s low-margin e-commerce model that has conditioned customers to expect low prices and quick delivery.<p>- price of a prime membership is going up, probably a good idea, i know people who have given up netflix, I know no one who has given up a prime membership.  Far more value with prime than netflix.<p>- retention of employee&#x27;s could be interesting to watch as a stock that could very likely be worth less in a years time than it is now would be a big paycut for alot of devs.<p>- shares down 10% at one point.  Option implied movement is 7.6% so this is an oversized move.<p>- Rivian really boosted amazon last year adding 11.8B to their bottom line but the stock forced amazon to take a 7.6B loss on Rivian this quarter, so I guess this isn&#x27;t something to be concerned with as this was never real anyway.<p>- interestingly, the CFO just said they have too many people at teh company, though he didn&#x27;t clarify if it was warehouse or developers,  I&#x27;m guessing its mostly the former and any developer head count downsizing will come from employees who leave due to a share price that is coming down