Amazon’s First-Quarter Sales Surge 23%

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April 25 (Bloomberg) -- Topeka Capital Markets Analyst Victor Anthony discusses Amazon’s earnings on Bloomberg Television’s “Bloomberg Surveillance.” (Source: Bloomberg)

You shall receive.

Nothing to become a's business model.

Sales rose 20% but their expenses increased by even more, limiting earnings per share to about half of what it was a year before.

Anthony joins us now by phone, and victor, there seems to be this idea that amazon is spending money as fast as they can make it.

Shipping cost grew 31%, which was faster than what revenue increase, how much longer can amazon keep us going before investors throw their hands up and say enough?

You had accelerated revenue growth, which topped our expectations you had gross margins, which expanded for the 10th consecutive quarter, however, as you noted, this was a heavy investment quarter.

They called on china specifically.

Ac huge opportunity -- they see huge opportunity there.

They are also investing heavily in cloud services business, so as a result, the margin did miss x relations for the quarter and they guarded margin contraction in the second quarter as well.

However, when you look at that, my key take away from this call in my key picks for investors is you invest along with amazon and you will be rewarded on return.

You do have a business that is fundamentally strong, 20% plus revenue growth, and returns an investor capital, and investors have been rewarded in amazon investing heavily over the past five years.

I think they will be rewarded going forward as well.

Victor, well said.

What aput up a chart, courtney, if you would.

Victor, how long until amazon essentially corners the retail market?

Do they have years and years of growth to come?

Or have a almost taken their fair share of retail america?

I think it is the former.

When you look at e-commerce, i think it has a 20% interest growth curve globally, so there is a lot more retail off-line that has to be moved onto the internet, and amazon is in the pole position to benefit from that.

So i think the runway for amazon is long and wide as well.

So you should continue to invest and i think amazon is a company that takes a multiyear approach to its growth and investment strategy.

You will see them continue to invest, but this is a model that has leverage.

They are choosing to invest the cash and that growth because quite friendly if amazon does not do it, someone else will.

Quite victor, as i look at the consensus assessments for the current and third quarter, amazon is forecast to make 36 tons versus a loss in the last two quarters of $.11. are they turning be corner?

They typically guide conservatively, so i expect them to beat that and probably report a positive number.

I would expect those numbers to come down in the second quarter.

Mine certainly has.

I think the key message for me is as you look at over the next

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