Amazon Q4 2022 Earnings Highlights
[Rewards] The e-retailer giant reported mixed Q4 results, feeling the pinch of higher costs and slower spending
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KEY Figures:
● Net sales in Q4 increased 9% YoY ( year-over-year) to $149.2 billion. Specifically, North America segment sales increased by 13%, but International segment sales decreased by 8% YoY. The AWS segment sales increased 20% YoY to $21.4 billion.
● Net income decreased to $0.3 billion in Q4, or $0.03 per diluted share, compared with $14.3 billion, or $1.39 per diluted share in the same quarter last year.
● Operating income decreased to $2.7 billion in Q4, compared with $3.5 billion YoY. This quarter's operating income includes approximately $2.7 billion of charges. Besides, AWS segment operating income was $5.2 billion, compared with $5.3 billion in the same quarter of 2021.
● For the full year 2022, net sales increased 9% to $514.0 billion, compared with $469.8 billion in 2021. AWS segment sales increased 29% YoY to $80.1 billion.
● For the full year 2022, net loss was $2.7 billion, compared with net income of $33.4 billion in 2021. 2022 net loss includes a pre-tax valuation loss of $12.7 billion from the investment in Rivian Automotive, Inc.
● Operating cash flow increased by 1% to $46.8 billion for the trailing twelve months, compared with $46.3 billion in 2021.
More statistics:
KEY Points:
● In the US, Same-Day Delivery service can be even faster in major metropolitan areas, such as Los Angeles, San Francisco and Oregon, where customers can receive hundreds of thousands of items within hours. In the EU, Same-Day Delivery is available in Belgium.
● Amazon attracted more than 100 million viewers worldwide to the first season of The Rings of Power, making it the most-watched Amazon Original series and driving more Prime sign-ups during its launch window.
● Amazon launched AWS regions in Spain and Switzerland as well as a second Region in India to continue expanding AWS's infrastructure footprint. As of the end of 2022, AWS announced plans to launch 15 more Availability Zones and five more AWS Regions globally.
● For the Q1 2023 guidance, net sales are expected to be between $121.0 and $126.0 billion, which means to grow between 4% and 8% YoY.
● For the Q1 2023 guidance, operating income is expected to be between $0 and $4.0 billion, compared with $3.7 billion in Q1 2022.
● Amazon is still notably rightsizing its operations and has announced a layoff of 18,000 employees, canceled several high-profile projects and closed facilities recently.
The KEY in your hands:
According to Morningstar, by February 3 2022, AMZN's shares has increased over 20% since the start of 2023, outperforming the S&P 500 (.SPX), which is about a 7.7% gain in the same period.
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Deep Value : Looks an opportunity in Amazon.
GodSpeed289 : Amazon has had its worst performance as they faced a range of headwinds due to global slowdown economy. Unevitably their revenue growth has slowed sharply resulting shrinking profit margin.
Amazon management are quick to react with its drastic cost-cutting measures by laying off 18,000 employees, and shuttering new businesses like Amazon Care, its healthcare start-up, and Scout, its home delivery robot. Report are also saying they are pulling back spending on Alexa, its voice-activated technology division.
Expectedly 2023 are going to be a challenging year for Amazon, given its size, especially with the macroeconomic challenges. The company's e-commerce and cloud computing businesses are sensitive to the business cycle.
Bad news aside. The good news are that Amazon stock looks cheap, the lowest since 2014. For the stock to recover, Amazon will have to do one of two things. It will have to either reaccelerate its revenue growth or improve its bottom line. Focusing on growing their high-margin businesses like Amazon Web Services, its third-party marketplace, and advertising could be their next strategic moves. With such recognizable improvement plannings, negative sentiment should shift and the stock will be rewarded for investors who still show great faith in Amazon. After all, this is still a company with significant competitive advantages and several dominant businesses.
TTicker : I like Amazon; they are a hold for me... don’t mean to be bullish, but I want to get in when on lower P/E and lower price point. If they paid a dividend... even it was just a penny... I would jump in blindly![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
帅气逼人的范恩 : If you can see a price of around 90 yuan, it should be a good place to get into the phone. Go for it!
102054665 : Amazon is such a huge business that has so much potential in the future. It is probably a deep value stock at this price.
Selinna Puliston : nice![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
MiddasHBK : problem is it's figures are not justifying it's current prices hmm
Liu Yongshu 102054665 : Value investment is evident at the moment, but it takes time to settle down. No one knows exactly how long; there are still risks
Liu Yongshu Selinna Puliston : You haven't had a chance to enter the market yet, and the downward trend hasn't come to an end yet. Are you shorting
Liu Yongshu TTicker : Because Amazon is a huge company, he has support no matter what, but his future potential is huge. Now it's only a short period of precipitation. If you choose, it will take time to settle down and may fall midway, so you need to be prepared
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