Author Topic: AMZN - Amazon.com Inc.  (Read 673866 times)

jschembs

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Re: AMZN - Amazon.com Inc.
« Reply #2440 on: November 02, 2019, 02:10:50 PM »
I don't follow AMZN too closely, but are others surprised AWS hasn't shown more operating leverage? Per the attached chart, quarterly AWS revenue has grown from $2.5 bn in Q1 2016 to $9.0 bn in Q3 2019, yet EBIT margins are flat at ~25%.


Liberty

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Re: AMZN - Amazon.com Inc.
« Reply #2441 on: November 02, 2019, 05:36:25 PM »
I don't follow AMZN too closely, but are others surprised AWS hasn't shown more operating leverage? Per the attached chart, quarterly AWS revenue has grown from $2.5 bn in Q1 2016 to $9.0 bn in Q3 2019, yet EBIT margins are flat at ~25%.

There's a lot of growth capex and opex in there, no doubt. They're still in land-grab mode.
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Spekulatius

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Re: AMZN - Amazon.com Inc.
« Reply #2442 on: November 02, 2019, 06:03:16 PM »
I don't follow AMZN too closely, but are others surprised AWS hasn't shown more operating leverage? Per the attached chart, quarterly AWS revenue has grown from $2.5 bn in Q1 2016 to $9.0 bn in Q3 2019, yet EBIT margins are flat at ~25%.

Itís probably by design. In their Q3 predetermining release, they mention 6  price cuts and a 44% reduction in storage costs this year. I presume they want to drive usage.
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Liberty

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cherzeca

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Re: AMZN - Amazon.com Inc.
« Reply #2444 on: November 11, 2019, 05:10:34 PM »
rumor dejour is that Bezos will buy the Seahawks and amazon will build redskins a new stadium with built in sponsorship.  amazon may become a very big nfl (and other) advertiser soon, driving eyeballs to amazon original programming, grocery stores and website (where those eyeballs will be monetized through search advertising). 

Gregmal

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Re: AMZN - Amazon.com Inc.
« Reply #2445 on: November 14, 2019, 02:31:28 PM »
https://www.cnbc.com/2019/11/14/amazon-cites-bias-in-microsoft-military-cloud-contract-win.html

"Unmistakable Bias"...LOL who the fuck is this guy kidding? Talking about bias? At best, pot meet kettle?

LOL again. Not to mention, theres nothing illegal about a buyer having preference.

cameronfen

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Re: AMZN - Amazon.com Inc.
« Reply #2446 on: November 14, 2019, 03:58:28 PM »
https://www.cnbc.com/2019/11/14/amazon-cites-bias-in-microsoft-military-cloud-contract-win.html

"Unmistakable Bias"...LOL who the fuck is this guy kidding? Talking about bias? At best, pot meet kettle?

LOL again. Not to mention, theres nothing illegal about a buyer having preference.

I donít know the details but Trump is on record saying the defense department should give the deal to Microsoft and also criticizing Bezos.  Then there was the problem that the original RFP was tailor made so amazon would win it.  So tailored that oracle sued that DoD was favoring amazon (Oracle lost one potential reason is because Amazon was the only at scale cloud provider anyway and so even if it was tailor made for amazon to win the military needed it).  Jedi would basically by itself increase Microsoft Azure revenue by something like 25% (Microsoft doesnít break out azure revenue).  You can make a lot of arguments why Amazon was likely the only reasonable choice.  And then Trump got involved.  Not an open shut case that there was bias against amazon, but you canít discount it especially considering Trumpís history. 

Spekulatius

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Re: AMZN - Amazon.com Inc.
« Reply #2447 on: November 14, 2019, 07:01:44 PM »
https://www.cnbc.com/2019/11/14/amazon-cites-bias-in-microsoft-military-cloud-contract-win.html

"Unmistakable Bias"...LOL who the fuck is this guy kidding? Talking about bias? At best, pot meet kettle?

LOL again. Not to mention, theres nothing illegal about a buyer having preference.

I think he has a point. Microsoft Azure does not even have the highest security clearance that is a requirement for this contract, yet they still won. Seems somewhat fishy to me.
https://www.cnbc.com/2019/10/25/microsoft-wins-major-defense-cloud-contract-beating-out-amazon.html

Quote
Early in the process Amazon was seen as the favorite, partly because its AWS business won a deal with the CIA in 2013. Also Amazon had been certified at the highest existing security clearance level, while Microsoft sought to catch up.

Also it is illegal of or a government procurement  officers to have a preference.
« Last Edit: November 14, 2019, 07:08:04 PM by Spekulatius »
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Liberty

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« Last Edit: December 03, 2019, 01:07:41 PM by Liberty »
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Liberty

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Re: AMZN - Amazon.com Inc.
« Reply #2449 on: December 04, 2019, 06:45:33 AM »
Andy Jassy, head of AWS, keynote at re:Invent 2019 (Dec 3, 2019):

https://www.youtube.com/watch?v=7-31KgImGgU

CNBC: "AWS' Andy Jassy: JEDI cloud contract was not adjudicated correctly":

https://www.youtube.com/watch?v=qqNPRl2xLVE

Werner Vogels keynote:

https://www.youtube.com/watch?v=OdzaTbaQwTg
« Last Edit: December 06, 2019, 07:00:30 AM by Liberty »
"Most haystacks don't even have a needle." |  I'm on Twitter  | This podcast episode is a must-listen