There is still growth ahead for Amazon


How can one possibly buy shares in Amazon now, after the stock has done so well? We get this kind of question from time to time, from new clients. The answer is, we expect them to go on doing well, and growing even further.


An Amazon Bank


Lot's of subscribers means lots of potential in this day and age. That is why a company like WhatsApp was valued at $18 billion even though they had not worked out how to monetise the platform.


Amazon 2Q - Profits are flowing


What a week! So many results, much wow. After yesterday's Facebook drama I was quite apprehensive about Amazon's quarterly update. The Seattle-based online retail giant has had a tremendous run, the share price is up 52% this year. That's right, up by more than half since 1 January 2018. Truly wonderful!


Amazon's new robot


Amazon just had their robotic arm patent approved. This is a big deal because this arm can throw things around and catch things inside the Amazon distribution centres.




On Friday last week the US Supreme Court ruled that internet companies need to collect sales taxes (equivalent to our VAT) on sales made in states that they don't have a physical presence. Before, you were only required to collect sales tax if you had a physical presence in a state, which gave online retail a significant advantage over physical stores who were required to charge their customers extra sales tax. With the growth of e-tail, it was only a matter of time before the law was changed. Think of the billions in taxes states have lost out on.


Amazon 1Q - profit more than doubles


Last week Amazon reported 1Q numbers, which far surpassed analyst estimations. For Amazon, you are never quite sure how much profit will drop to the bottom line from their billions in revenue; profits are a bit of an optional extra in their current growth phase.


Amazon FY - Cloud prints cash


I remember a time when Amazon used to stumble on to a profit every once in a while. These days, with Amazon Web Services (AWS) printing cash, profits are becoming the norm. Amazon reported 4th quarter and full year numbers last week Thursday which pleased the market and smashed expectations.


Amazon 3Q numbers - surge in profits


Amazon's 3Q Numbers In his new book, The Four, Prof. Scott Galloway says that Amazon appeals to our consumptive gut, taking in stuff we need to survive and sending it to our bodies. The notion of "more" is hardwired into us. Even when things are too much, there is still a desire for more. When it comes to consumption; throughout history the penalty for too little has been starvation and malnutrition which is a terrible death. The penalty for too much is lethargy, gluttony, diabetes but has a pretty long lag. Open your cupboards, open your closets you have ten to a hundred times more than you really need. It's really crazy when you think about how much stuff we have, but its so hardwired in our DNA! The ultimate business strategy is more for less. It has been the business strategy of China, Walmart, and now Amazon.


Amazon is coming for you


A few days ago, I was watching a Bloomberg interview of one of my favourite Professor Entrepreneurs, Prof. Scott Galloway. They asked him about his new book The Four, Or How To Build A Trillion Dollar Company and his thoughts on Amazon. Below is what he had to say about the company, and here at Vestact we kinda liked what he had to say because Amazon is one of our biggest holding for our offshore portfolios.


Amazon 2Q - Revenue up, profit down


Amazon is an equally exciting and amazing business, every little bit as intriguing as the new technology titans of our time. What Jeff Bezos has been able to build over a period of two and bit decades is a testament to his vision and belief that anything is possible. In fact, the anything store from A-Z is what Bezos wants Amazon to be. Whether you are a part time user of the service to buy infrequently, or whether you are a Prime user who likes to order everything at all points online, and live for the convenience, then you pay more and Amazon is happy to deliver. I guess Bezos and Amazon work with the philosophy that if the customer adopts the product/service, then we will give it everything, if not, cut it and can it.


Amazon 1Q - more impressive growth


Amazing Amazon just continues to thrive. They reported first quarter 2017 results last night which the market took kindly to. The stock is up 4% after the close, touching on $954 a share! Before we go through the many highlights, let's look at the numbers.


Amazon 4Q & FY numbers - strong growth from AWS


Amazon reported numbers after hours, this was for the "holiday" quarter - Fourth Quarter Sales up 22% to $43.7 Billion. The sales number fell short of expectations and guidance, as much as 1 billion Dollars or around 2 and a bit percent relative to what the market expected. The company reported profits ahead of consensus, that matters little when you are owning the stock for the sales growth. There is a major contributor over the last few years, that being AWS (Amazon Web ServiceS). In case you needed a refresher - Amazon AWS update.


No queues, no checkout tills


When you think about Amazon, you think about a company that is completely online, you think about a company that has no store presence and is at the cutting edge of retail with their massive fulfilment centres. That is how I think of Amazon. Well, wait. That is about to all change. Except, not in the way that you may have thought. There may still involve very few people in these stores. The technology being touted is something called "Just Walk Out". Here is an introductory video that Byron sent to the WhatsApp group, introducing Amazon Go, with the pay off line of "No lines. No Checkout. (No, Seriously) - The world's most advanced shopping technology. You see that the clip, a day old, has had 1.5 million views already and counting at a rapid rate.


Amazon AWS update


Amazon have just finished what is called the AWS Re:INVENT conference. I don't blame you for not knowing what that is, we will try our best to explain. It is 32 thousand folks crammed into a giant auditorium (this time in Vegas) with the web service business chief (Andy Jassy) opening with examples of how the services are used, and then away we go. Get togethers for all the people there, plus another 50 odd thousand watching online, in part enabled through the backbone of Amazon Web Services (which is what AWS stands for). Don't feel confused, this is all rather new for all of us, this business after all is only ten years old, and is half the age of the parent company, Amazon.


Amazon 2Q blows estimates away


Amazon reported numbers after-hours yesterday. This is an incredible business too. The founder has pretty much tried everything, you may recall the infographic from the Visual Capitalist - How Jeff Bezos Built his Amazon Empire. There are tons of things that the fellow has started and failed at, it is better to have tried and failed rather than to have never tried at all, as they say in the classics. Straight into the new age retailer's results - Announces Second Quarter Sales up 31% to $30.4 Billion.


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