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Brawmethius t1_iuhtp8k wrote

Maybe this will shed light to all the headline ER "traders".

"wHy StONk doWN, bEaT EPs"

Yeah well buddy no one was happy to see AWS slowing growth and this graphic does a great job of why people are not happy about that.

Plus bad Q4 guidance.

Investors probably starting to go "Hey amazon can you go from that we losing money to grow to just profit on the main business" and Amazon said yeah no lol.

208

discountgenghiskhan t1_iuif01a wrote

Amazon’s policy about growth haven’t changed in the last 20 years, I don’t think they give a flying fuck about their stock prices or what the retail traders think.

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Notoriolus10 t1_iujbn8m wrote

They are a net issuer of shares and they rely on stock based compensation a lot to retain talent, to the tune of $17.7B in the last 12 months. Even if the company didn’t care about their stock price, their employees sure do.

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Humble_Increase7503 t1_iuk108y wrote

There’s Amazon “don’t care about the stock price”

And then there’s meta “don’t care about the stock price”

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[deleted] t1_iui7lqj wrote

What specifically do you see in this infographic that's bad? Other than a visual illustration of how small the profit margin is compared to the cost & revenue?

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LeCheval t1_iuic58i wrote

Look at the profit margin for AWS compared to the entire rest of Amazon’s business.

AWS

  • Revenue = $20.8B
  • Operating Profit = $5.4B

Rest of Amazon

  • Revenue = $106.3B
  • Operating Profit (Loss) = ($2.98B)

If Amazon were to immediately sell off everything except for its AWS portion of the company, it would (theoretically) increase profits by ~$3B. Everything other than AWS looks like a money sink.

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spagetidoodle t1_iuj38oh wrote

If you controll the full market at a loss you are worth more than if you controll small amout of the market at a small profit. Amazon have money to play monopoly

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ankole_watusi t1_iuj641f wrote

If you control the full market at a loss eventually governments will crack down to prevent becoming a monopoly. And the unfair practice of “buying market share”

And this would be very damaging.

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boygito t1_iujaw92 wrote

No they won’t. Governments only crackdown if a monopoly is hurting the public to make obscene profits. If a company is losing money, hrs hard to argue they are hurting the public

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ankole_watusi t1_iujdp5l wrote

It’s predatory and yes they do. Bait and switch.

They don’t generally do it till the prices go up after complete control though.

Gummit is slow.

7

hellish0098 t1_iuivi9m wrote

Well…we need a more detailed breakdown to identify which businesses are actually losing money, I wanna bet those physical stores and prime content are huge money drainers

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ankole_watusi t1_iuj5q4a wrote

Haha plus they would have a huge captive customer for AWS.

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Brawmethius t1_iuibhc2 wrote

Yes exactly that. With out AWS they run at a loss.

What did we find out at Q3?

AWS slowing growth.

Or in other words; Amazon effectively came out and said there is a chance we return to operating at a quaterly loss.

Expecting additional costs to revenue and slowing revenue.

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[deleted] t1_iuil8do wrote

[removed]

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Brawmethius t1_iuilvu9 wrote

Apple has about 90B quaterly revenue, Amazon has 130B.

Apple has better margins and lower total overhead. They are better at turning their revenue into profit.

In theory why Amazon got run up to 100 P/E is if they could maintain this revenue stream and bring down their costs they would become more profitable than Apple.

This last Q3 earnings reminded investors that is not in the next year.

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Humble_Increase7503 t1_iuk0uny wrote

On AWS, perhaps they set some really hard to beat comps, and keeps a strong/healthy growth rate years out.

The truth of AWS growth was probably somewhere in between

1

Wotg33k t1_iuhzb4w wrote

Bezos ain't got it.

I just don't think he has the love for technology and human life that it takes to take Amazon to the next level. He got caught up in the profits like most do. None of these dudes are nerds or geeks. They're sell outs. Except maybe Elon, but he's disappointing in his own way.

−14

Archivist_of_Lewds t1_iui3541 wrote

Elons king sellout. Dude doesn't even actual invent things. He buys them and then tries to extract profit by boosting shares with market manipulation.

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Wotg33k t1_iui7bhh wrote

I'm saying at least he still geeks out. The rest of them are all just rich and confused.

−6

alphaomega0669 t1_iuiea4y wrote

Tax: $0.1b. 😂

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GirthWoody t1_iuiy62f wrote

The mfs spent 700% more on making the Rings of Power than they did on taxes.

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voluntarycap t1_iuk7fzx wrote

This says more about just how bad an investment shits of power was lmfao

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SkippyTheBlackCan t1_iuiz4ge wrote

That is lile 3% from the net income! And they wonder why the gov debit is high ¯\_(ツ)_/¯

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Idepreciateyou t1_iujl3r0 wrote

Because the government is inefficient?

Why am I being downvoted? ☠️

−6

Tarron_Tarron t1_iui13ru wrote

What is the difference between COST OF REVENUE and OPERATING EXPENSE

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Trouser_Snakes t1_iui3ht9 wrote

I think its how much each stuffed panda costs (CoR) vs how much it costs to keep all the lights on/machines running in a Fulfillment Center (it's a lot... we run 24/7)

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Miloh_Dangler t1_iujajcx wrote

I was wondering the same thing and hoping to find an answer in here that even a regard like myself could understand. Appreciate it bruv 👊

4

meta1sides t1_iuig0hi wrote

The fact that this is the 2nd top comment speaks volumes

25

LeCheval t1_iuicv9z wrote

I believe that Cost of Revenue are generally direct/variable costs while operating expenses are fixed/indirect costs. The cost of revenue would include things like the cost of the goods sold, whereas operating costs would include things like electricity/lease/employee salary costs.

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discountgenghiskhan t1_iuifdtz wrote

direct vs indirect costs, do a quick google search for COGS vs operating expenses

3

discountgenghiskhan t1_iuifece wrote

direct vs indirect costs, do a quick google search for COGS vs operating expenses

2

mnelson10000 t1_iuj1sqd wrote

Cost of revenue = cost of goods and operating expense = coke and hookers

2

seethecopecuck t1_iuhyc9k wrote

This just highlights how much of a juggernaut APPL is. AAPL revenue is double.

Edit: this is not true, I looked at an incorrect graphic. Still beast but not that beast.

20

[deleted] t1_iui70jo wrote

Q3 revenues are: AMZN: $127 billion, AAPL: $83 billion.

Maybe you meant profit, not revenue?

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AmazingLetterhead194 t1_iuhzu8w wrote

What is the name of the app that’s generating these charts ?

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owentrillson t1_iui687b wrote

What is cost of revenue? why is it not extrapolated I’m regarded thanks regards 👍🏼🌈🐻

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koolbro2012 t1_iujsz5w wrote

cost basis for the items they sell or count as a sale. amazon is just an online Walmart.

3

Wirecard_trading t1_iui5slr wrote

So AMZN financials are shit? Thanks we knew that before.

They had a decrease of -19,X bn in FCF for Q3 btw. Let that sink in.

Edit: Everybody shits on META, but they are FCF positive despite huge R&D costs which might lead to something. the real fuck up is AMZN imho. warehouses..yeah right fucking geniuses over there.

4

Purple_Falcone t1_iuigi7h wrote

Comp this to Tesla and you can see why Tesla is so “overvalued” love to see some more profit from Amazon after all these years!

4

doolytokki t1_iuij3ua wrote

who mkes these beautiful breakdowns. is there something for other tickers? also has the data been vetted?

3

DustinKli t1_iuip182 wrote

Did you make this or is there a website that does breaks down this data?

2

ankole_watusi t1_iuj5ej2 wrote

That’s one thin mint there at upper right!

2

lightning_whirler t1_iujciq7 wrote

Accountants can make the numbers look however they want. This is especially true with "Operating profit", a massive investment several years ago is now generating cash, but without knowing the depreciation of that initial investment, the operating profit number means nothing.

2

Chase-Lemon t1_iujd8yg wrote

Does anyone know how OP created this chart? Its a very solid way to visually show data and I want to use it at work on some presentations.

2

VisualMod t1_iuht25m wrote

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1

AkoGTO t1_iuiep2v wrote

So trending to $50 per share soon?

1

yalogin t1_iuifav1 wrote

Does Amazon breakdown the revenue for their devices?

1

self-assembled t1_iuj6rri wrote

Great, so their tax rate is 3.4%. What happened to that minimum tax rate that was passed?

1

ih8karma t1_iuj6sj4 wrote

I think this graph is a good example to invest in MSFT. Specifically their Azure cloud services.

1

Hectosman t1_iujhlg5 wrote

What's "Cost of Revenue"? Debt payments?

Edit: NVM - It's another way of saying Cost of Goods sold (COGS)

1

mmjI t1_iujn0kq wrote

Why can't I deduct my opex (rent, food) from my taxes?

1

ebann001 t1_iujuf6h wrote

And no right offs

1

bbien12 t1_iujvw0h wrote

nice tax bracket of 4%

can I have same?

1

Freezie--POP t1_iuk0yga wrote

Just think this is what the 3rd year in a row they don’t have to pay over 10% of there actual tax bill….

1

Sudden-Cow-5779 t1_iuk0zl6 wrote

What cite did you get theses charts from or did you make them ?

1

voluntarycap t1_iuk7d6r wrote

To think they could’ve increased their profit by over 30% by just not putting out the flaming shit can that was RoP

1

_Jetto_ t1_iui7qs9 wrote

It’s insane Apple is higher than Amazon?

0

BSCompliments t1_iuifo93 wrote

Why? Profit.

3

_Jetto_ t1_iuihtz6 wrote

Oh true. My small brain thought Amazon was on par with Apple in terms of scale etc but I’m dumb

−3

BSCompliments t1_iuiiyj9 wrote

Well, Amazon has higher revs, they just don't get to keep nearly as much of it.

3

LavenderAutist t1_iuijcwd wrote

Why do people think it makes it easier to understand the financials of a business.

It would take me 10x the time to figure out what is going on then if this were in a table.

0

OB1KENOB t1_iuil5ca wrote

Go ahead, make them GME calls cheaper

−1

VisualMod t1_iuht2q3 wrote

>@Much_Blacksmith_9865 I'm not sure what you're trying to say with this post. Are you trying to provide information on Amazon's recent financials? If so, then thank you for the update.

−5

Much_Blacksmith_9865 OP t1_iuht8p8 wrote

Yeah did you not hear about how they released their financial statement a week ago!

0

Do_dirty3 t1_iuhuz74 wrote

Thanks for sharing! Perhaps a takeaway or two is what those folks would be looking for :)

1

DRKMSTR t1_iujfege wrote

This is what happens when you tax profit. They pay barely any taxes.

Tax revenue instead.

−5

TheSneedles t1_iui0hu2 wrote

If Amazon had to pay taxes like they should, they would be literally losing money

−15

Idepreciateyou t1_iujkm9f wrote

This isn’t how it works, chief.

6

TheSneedles t1_iujlnso wrote

If Amazon paid taxes on its 127B of revenue they would be paying 20B in taxes, stupid idiot

−8

Dr-Shakalu1 t1_iujonpe wrote

If companies paid c Corp tax rates on their revenue they would all go bankrupt.

6

SaneLad t1_iujquop wrote

That's so regarded you must be a European politician or something.

1

GirthWoody t1_iuju1kd wrote

Companies pay taxes on profit not revenue.

1

TheSneedles t1_iujw3a1 wrote

Why can’t you pay taxes on what’s left after you pay your bills?

−1

GirthWoody t1_iujzr3p wrote

Do you understand what revenue and profit mean?

2

brainwashedASSHOLE t1_iuhtv66 wrote

What happens when China invades Taiwan, US stops imports from china, and Amazon has nothing to sell?

−25

more_random22 t1_iuhuemq wrote

What happens when earth is hit by an asteroid

Amazon has nothing to sell

What happens when Jesus returns and blah blah blah , then Amazon won't blah blah blah

29

H3rbert_K0rnfeld t1_iui5rw1 wrote

What happens when there's an Alien invasion and Amazon has nothing to sell? Ol' Herb's puts will print.

3

Soft-Breadfruit8690 t1_iuhybee wrote

> What happens when China invades Taiwan

We all laugh at a country with no recent military experience and no experience in amphibious invasions completely fail and gets butchered by the thousands of prepared defenses on Taiwan.

We might even get so see Taiwanese tanks grease their tracks with PLA soldiers’ guts: https://en.m.wikipedia.org/wiki/Battle_of_Guningtou

6

lrrc49 t1_iuhwm1k wrote

the second china starts loading up boats a fraction of the usa navy will just go and chill out in between the two countries.

Ain't no way an invasion is actually going to happen.

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H3rbert_K0rnfeld t1_iui5xne wrote

No way would Russia invade Ukraine. Yet here we are.

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lrrc49 t1_iuiam6z wrote

Yeah and the response and subsequent gutting of the Russian economy should serve as a deterrent.

2

IcarusOnReddit t1_iuibwni wrote

Couldn’t China just blackmail American politicians to not do anything like Russia did with Trump and others?

−2

lrrc49 t1_iuicvk1 wrote

depends on if they have enough legit blackmail on enough key politicians.

The military industrial complex is also a huge lobby and would certainly push to send resources (and Taiwan is arming up as we speak $$).

2

IcarusOnReddit t1_iuigbke wrote

Hmmm. Hard to say. I think it’s safe to say that Russian blackmail/bribes are an influential factor on the GOP versus the dems, but have we seen enough to know what the pressure situation is in China? Speaking of money, is it good for Chinese stocks if Rs win the midterms? Does Russian influence carry over to China in a similar manner for US politicians? Will NIO be great again?

−2