We are particularly encouraged by this analysis, because investors out there may end-up wrongly interpreting FedEx (FDX)'s terrible guidance and economic outlook as a warning about Amazon's business.
Analysts are now scrambling to assess whether the problems that FedEx described in its business and the global economy at-large will slow Amazon's e-commerce.
Since there are many differences between FedEx and Amazon's business, we are sticking with our long-term thesis on Amazon.
Bottom line We like UBS' work here as many on Wall Street clearly extrapolated FedEx's guidance to mean Amazon's e-commerce business is struggling — when, in actuality, it is not.
If consumers roll back their discretionary spending, which Amazon's e-commerce business relies on, profits from AWS can help offset changes in consumer spending behavior.