Latest / Bloomberg Intelligence / Bloomberg's Sweeney, Wilson on Amazon's Blowout Earnings(Audio)

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Bloomberg's Sweeney, Wilson on Amazon's Blowout Earnings(Audio) · Bloomberg Intelligence

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  Speaker 1: you if you look at where they're trading at right now,
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  Speaker 1: around seventy nine per share. The valuation is in line
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  Speaker 1: to what it was in jull I last year and
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  Speaker 1: St Jude up today by twenty five point six percent.
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  Speaker 1: Am Jin top first quarter profit estimates, also boosting its
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  Speaker 1: on Bloomberg Radio. Charlie, thank you from the Bloomberg News Room.
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  Speaker 1: I Mark Crumpton. The United Nations Security Council is condemning
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  Speaker 1: its nominee. Speaking in Evansville, Indiana, today, Mr Trump claimed
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  Speaker 1: at a joint meeting of Congress this summer. This address
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  Speaker 1: Duke Ellington's suits, piano and other belongings are heading for auction.
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  Speaker 1: I'm Mark Crumpton, Charlie, and we thank you and again
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  Speaker 1: recapping a move horor for stocks today SMP down nineteen,
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  Speaker 1: a drop of nine tenths of one percent. Seconds ago.
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  Speaker 1: We did hear from Amazon dot Com reporting earnings per
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  Speaker 1: share of a dollar seven estimates there fifty seven cents.
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  Speaker 1: Net sales twenty nine point one billion dollars estimates twenty
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  Speaker 1: eight billion right now looking at Amazon shares six sixty
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  Speaker 1: seven in the extended session. They finished the regular session
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  Speaker 1: New York trading at six o two. So certainly a
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  Speaker 1: stock and a story we're watching after ours. I'm Charlie Palatine.
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  Speaker 1: That's a Bloomberg business flash. Move around, most great promotion.
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  Speaker 1: Bloomberg taking stock movers and shakers with Bim Fox and
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  Speaker 1: Kathleen As on Bloomberg Radio. Well, Charlie palotis reporting on
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  Speaker 1: those Amazon results. Wow. The first quarter earnings for Shore
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  Speaker 1: at a hundred excuse me, a dollar seven cents versus
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  Speaker 1: an estimated fifty seven cents reminds me of Facebook. Uh,
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  Speaker 1: just blowing off the door with its EPs yesterday. On
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  Speaker 1: the second quarter net sales, Uh, they were a bit
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  Speaker 1: higher the net sales coming in. But it's a second
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  Speaker 1: quarter outlook where they're expecting twenty point eight to thirty
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  Speaker 1: billion dollars in change versus the twenty nine point billion
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  Speaker 1: one billion reported in the first quarter that we're going
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  Speaker 1: to be looking at shortly. I just want to break
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  Speaker 1: down the SP five hundred today. We've got nine gamers
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  Speaker 1: for Herden, two losers, four un changed. Dave Wilson are
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  Speaker 1: stocks set, a r is here, and we've got of
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  Speaker 1: course Pim Fox and meet Kathleen Hayes. Paul Sweeney, who's
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  Speaker 1: the director of research at Bloomberg Intelligence follows Amazon very closely.
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  Speaker 1: Probably want you to jump in and give us your
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  Speaker 1: first blessed analysis of these results be able. The market
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  Speaker 1: certainly likes these numbers. The stocks up about nine or
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  Speaker 1: ten percent uh here in the aftermarket. So just a
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  Speaker 1: real blowout in quarter in terms of revenue and EPs
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  Speaker 1: relative to consensus estimates. And I think even more more importantly,
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  Speaker 1: the company's guidance for for revenue for the second quarter
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  Speaker 1: is better than expected as well. So you know what,
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  Speaker 1: Amazon investors have always been, uh, you know, accustomed to
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  Speaker 1: extremely strong top line growth, but now the company is
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  Speaker 1: actually starting to deliver some profits, which is something that
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  Speaker 1: Amazon investors really haven't had much of in the past.
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  Speaker 1: Let me just add a little bit having to do
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  Speaker 1: with Amazon Web Services, one of the most well one
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  Speaker 1: of the strongest growing businesses that Amazon has about ten
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  Speaker 1: percent of their business. But Amazon Web Services reporting that
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  Speaker 1: they did two point five seven billion dollars in business.
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  Speaker 1: That's compared to two point five three billion that was
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  Speaker 1: estimated by analysts, so beating analysts estimates there. And also
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  Speaker 1: the company says that customers bought twice as many fire
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  Speaker 1: tablets as a year ago, So uh, customers buying more
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  Speaker 1: and people using the Amazon Web Services even more. Shares
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  Speaker 1: of Amazon are up twelve and a half percent UH
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  Speaker 1: in after hours trading. Dave Wilson, Well, you know, you
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  Speaker 1: can't just look at the web services business, which really
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  Speaker 1: the growth engine of Amazon, uh, with without sort of
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  Speaker 1: looking at the year or two year comparisons. We're talking
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  Speaker 1: about sales up by a billion dollars, sixty percent, operating
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  Speaker 1: income more than tripling. I mean, do we really need
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  Speaker 1: to focus more on this side of the business, the
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  Speaker 1: whole cloud community business to understand what's going on at
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  Speaker 1: Amazon these days? That's the question to you. Paul Sweeney. Yeah,
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  Speaker 1: I think that you know, one of the things about
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  Speaker 1: the cloud business for you know, all the tech tech companies.
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  Speaker 1: It's obviously um extraordinary growth story within tech overall. But
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  Speaker 1: what's I think Amazon investors like about this business in
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  Speaker 1: addition to that huge six revenue growth, is the fact
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  Speaker 1: that it's actually profitable UM and you know, very strong
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  Speaker 1: profit margins there, which again is something profits that Amazon
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  Speaker 1: investors really haven't seen too much in the life of
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  Speaker 1: the company. So it's certainly you know, Amazon has certainly
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  Speaker 1: got a leading position in that marketplace. But as our
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  Speaker 1: tech research has shown over the last couple of years,
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  Speaker 1: it's an incredibly competitive market plays lots of big players,
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  Speaker 1: lots of price competition UM. But AWS is clearly a
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  Speaker 1: leader there. And again it's a profitable business for Amazon,
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  Speaker 1: one of the best performing stocks last year. That's Amazon
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  Speaker 1: really doubling its market volume. TEA. What are we waiting
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  Speaker 1: to hear on the call from Jeff Bezos? You know,
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  Speaker 1: I think it's uh, I think we're waiting to see
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  Speaker 1: a little bit about how they're thinking about the overall
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  Speaker 1: expense and investment UM in terms of operating expenses and
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  Speaker 1: capital expenses in the core business. Again, there's always a
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  Speaker 1: question there of are they going to rewatch it up
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  Speaker 1: uh expense growth and at the expense of near term profits.
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  Speaker 1: So I think people want to get a sense of
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  Speaker 1: what is their outlook for expense growth going forward, because
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  Speaker 1: we know the top line is very strong. And then
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  Speaker 1: number two is again on the cloud business. You know,
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  Speaker 1: how sustainable is this type of growth in this type
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  Speaker 1: of profitability because investors are certainly getting used to seeing
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  Speaker 1: these kind of numbers out of the cloud business. Just
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  Speaker 1: to recap, Amazon dot Com reporting first quarter earnings per
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  Speaker 1: share of a dollar seven versus analyst estimates of fifty
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  Speaker 1: seven cents. Company also reporting net sales of twenty nine
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  Speaker 1: point one billion dollars versus estimates of eight billion dollars
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  Speaker 1: that was provided by analysts. Once again, shares of Amazon
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  Speaker 1: right now are up about twelve percent and after hours trading.
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  Speaker 1: I want to thank you very much Paul Sweeney joining
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  Speaker 1: us from Bloomberg Intelligence. All right, now, it's time for
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  Speaker 1: up one point three eight, settling at a fifteen point
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  Speaker 1: important to note that many people have been piling money
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  Speaker 1: that typically in the past has been a sign of
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  Speaker 1: a potential market downturn. All right, Dave, you're up. Uh Hi,
• 10:30
  Speaker 1: my name is Dave. Just what do you think you're doing? Things?
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  Speaker 1: We're going on will for moment four Dave. Carbo Ceramics, Dave,
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  Speaker 1: question you think about what's going on with energy stocks.
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  Speaker 1: The way the price of oil is rebounded in the
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  Speaker 1: least two and a half months, Carbo Suramics has been
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  Speaker 1: certainly left out of the recovery. Now, this is a
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  Speaker 1: company that provides what's called a suram mcpropp and used
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• 11:18
  Speaker 1: that showed just how badly it's business has suffered. For
• 11:22
  Speaker 1: the fifth grade quarter, carbon Ceramics postal loss and saw
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  Speaker 1: revenue fall more than fifty percent. Now chief exacutive Gary
• 11:29
  Speaker 1: Coolestants in the statement the Carbon Ceramics may need to
• 11:31
  Speaker 1: tap news sources of financing. He had that company may
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  Speaker 1: try to generate revenue from its technology and plans more
• 11:37
  Speaker 1: cuts in pay, but that altogether shares a carbon Ceramics
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  Speaker 1: fell as much as twenty one percent today, traded at
• 11:45
  Speaker 1: a record low and closed with a loss of Dave Wilson,
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  Speaker 1: Thank you very much Bloomberg Stocks comments. Follow him on
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