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☆ Amazon shares jump as analysts praise third-quarter results
▼ + stars: | 2023-10-27 | by ( Ashley Capoot | ) www.cnbc.com time to read: +2 min

Shares of Amazon jumped more than 6% Friday after the company released third-quarter earnings that beat analysts' estimates and showed the company's cost-cutting efforts are working. The company's net income more than tripled to $9.9 billion, or 94 cents a share, from $2.9 billion, or 28 cents a share, a year earlier. Amazon reported an operating margin of 7.8%, the highest since it reached a record of 8.2% in the first quarter of 2021. The company's operating margin for the third quarter marks a significant increase over the 2% margin it reported a year ago. Blair analysts said Amazon "handily" beat expectations for the quarter and saw real improvement in operating income growth.

Persons: Andy Jassy, Jassy, Blair, Amazon, Goldman Sachs, — CNBC's Michael Bloom, Annie Palmer Organizations: Amazon, Wall Street, Jefferies, AWS, CNBC

☆ Amazon’s Profit Triples as Sales Show Resilience Leading Into Holidays
▼ + stars: | 2023-10-26 | by ( Sebastian Herrera | ) www.wsj.com time to read: 1 min

An Amazon same-day fulfillment facility in Richmond, Calif. Photo: Marissa Leshnov for The Wall Street JournalAmazon.com said profit tripled to nearly $10 billion from July to September as strong sales in its cloud-computing, advertising and retail units helped the company continue its rebound from postpandemic lows. Chief Executive Andy Jassy said the company would reap tens of billions of dollars in revenue in the next several years as customers turn to generative AI opportunities available within its cloud-computing business, known as Amazon Web Services, or AWS. Business customers are likely to be less cautious with their spending, he said.

Persons: Marissa Leshnov, Andy Jassy Organizations: Wall Street, Amazon Web Services, Business Locations: Richmond , Calif

☆ Analysts are going to have to raise their AWS growth estimates, says Deepwater's Gene Munster
▼ + stars: | 2023-10-26 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAnalysts are going to have to raise their AWS growth estimates, says Deepwater's Gene MunsterGene Munster, Deepwater Asset Management, joins 'Fast Money' with updates on Amazon's investor call following Q3 earnings.

Persons: Deepwater's Gene Munster Gene Munster Organizations: Analysts, Deepwater Asset Management

☆ Amazon's grey cloud is the new blue sky
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Mike Blake Acquire Licensing RightsNEW YORK, Oct 26 (Reuters Breakingviews) - Amazon.com’s (AMZN.O) cloud business is offering a small sliver of light. The performance matches last quarter’s growth and is in-line with what analysts were expecting, according to LSEG. Alphabet, in its earnings on Tuesday, said its similar unit’s growth rate slowed. Shares in the company led by Sundar Pichai declined by a tenth in two days. It’s not exactly a cloudless sky - AWS growth is slowing relative to last year, and its growth rate is still 10 percentage points below Alphabet’s.

Persons: Andy Jassy, Mike Blake, Sundar Pichai, It’s, Jennifer Saba, Lauren Silva Laughlin, Sharon Lam Organizations: Amazon Web Services, REUTERS, Reuters, North, X, Unilever, Thomson Locations: Laguna Beach , California, U.S, It’s

NEW YORK (AP) — Amazon on Thursday reported strong revenue and profits from the summer months driven by growth in online sales and its advertising business. Amazon made $9.9 billion in profits, topping analysts' expectations and sending its stocks higher in after-hours trading. Amazon is also seeing strong customer demand across categories like beauty, health and personal care items, Olsavsky said. Meanwhile, Amazon's cloud competitors have delivered mixed results. Earlier this week, Microsoft reported strong revenue for its flagship cloud platform, Azure, while revenue from Google’s Cloud division fell below analysts’ expectations.

Persons: Andy Jassy, Brian Olsavsky, “, ” Olsavsky, Olsavsky, ”, Jassy, FactSet, Lina Khan Organizations: Amazon, Amazon's, Revenue, Web Services, AWS, Microsoft, Google’s, Federal Trade Commission, Big Tech Locations: San Francisco

☆ Amazon predicts bright holiday season, cloud stabilizing
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +3 min

Facing an array of challenges to its business, Amazon is trying to keep its mantle as the world's biggest cloud provider and online retailer. The U.S. Federal Trade Commission in September sued Amazon for allegedly inflating prices and wielding monopoly power, claims that Amazon has disputed. Microsoft, the second-largest cloud provider by revenue after Amazon, beat Wall Street estimates this week as its customers geared up for AI upgrades. Amazon Web Services brought in revenue of $23.1 billion, compared with analysts' expectations of $23.09 billion. For the current holiday quarter, the company forecast revenue in the range of $160 billion and $167 billion.

Persons: Gonzalo Fuentes, Long, Andy Jassy, LSEG, Akash Sriram, Anil D'Silva, Deepa Babington Organizations: REUTERS, Amazon.com Inc, Google, Microsoft, Amazon, U.S . Federal Trade Commission, Amazon Web Services, Wall, Web Services, Thomson Locations: Bretigny, Paris, France, Bengaluru

☆ Amazon stock swings after a great quarter underscore our golden rule during earnings season
▼ + stars: | 2023-10-26 | by ( Zev Fima | ) www.cnbc.com time to read: +7 min

Operating income increased over 340% to $11.12 billion, significantly exceeding forecasts of $7.7 billion, according to FactSet, and above the high-end of management's guidance. As a result, the operating income estimate is a more telling metric on how Amazon fared relative to Wall Street's expectations — and make no mistake, it was strong. In the Companywide part of the table, the cost of sales line-item came in above expectations at $75 billion. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

Persons: Andy Jassy, Jassy, that's, it's, Jim Cramer's, Jim Cramer, Jim, Omar Marques Organizations: Amazon, Services, Revenue, LSEG, Rivian Automotive, Management, North, CNBC, Lightrocket, Getty

☆ Analysts are bullish on Amazon's growth story ahead of its earnings
▼ + stars: | 2023-10-26 | by ( Hakyung Kim | ) www.cnbc.com time to read: +5 min

Investors are staying bullish ahead of Amazon's quarterly report Thursday as the company's cloud and consumer-focused businesses show signs of strength. Heading into Amazon's earnings announcement, some of the biggest firms were optimistic on the company's growth potential. Anmuth has an overweight rating and price target of $180 on shares, suggesting the stock could jump more than 48%. The firm kept its buy rating and $167 price target on shares, which implies 37.5% upside potential from Wednesday's close. Bank of America says more room for growth ahead Bank of America analyst Justin Post reiterated his buy rating while raising his price target to $154.

Persons: Doug Harrington, Doug Anmuth, Anmuth, Ronald Josey, Mark Mahaney, Morgan Stanley, Amazon Morgan Stanley, Justin Post, Michael Bloom Organizations: Deal, Amazon, Amazon Web Services, JPMorgan, Citi, " Bank of America, Bank of America Locations: Echo, India

☆ Amazon's cloud group becomes more profitable but misses on top line
▼ + stars: | 2023-10-26 | by ( Jordan Novet | ) www.cnbc.com time to read: +1 min

Amazon said Thursday that its cloud unit grew revenue 12% year over year in the third quarter. That's lower than the $23.20 billion consensus among analysts polled by StreetAccount. Amazon had a happier story to tell on the profitability of its cloud business. It generated $6.98 billion in operating income, a figure that was up 29% and considerably more than the StreetAccount consensus of $5.63 billion. Amazon's entire business generated $11.19 billion in operating income.

Organizations: Amazon, Amazon Web, StreetAccount

☆ Live updates: Amazon Q3 earnings report coming after the closing bell with the stock up big in 2023
▼ + stars: | 2023-10-26 | by ( Business Insider | ) www.businessinsider.com time to read: +1 min

Link icon An image of a chain link. It symobilizes a website link url. Link icon An image of a chain link. It symobilizes a website link url. "We believe that each +10 increase in energy costs could result in a $200-$300mm headwind to Q3 EBIT," analysts said.

Persons: Goldman, Goldman Sachs Locations: Wednesday's

☆ Amazon's profit margin nears record after CEO Andy Jassy's dramatic cost-cutting efforts
▼ + stars: | 2023-10-26 | by ( Annie Palmer | In Annierpalmer | ) www.cnbc.com time to read: +2 min

Amazon founder Jeff Bezos famously told rivals, "Your margin is my opportunity." His successor as CEO, Andy Jassy, is telling Wall Street about opportunities to increase margin. In its third-quarter earnings report on Thursday, Amazon reported an operating margin of 7.8%, the highest since it reached a record of 8.2% in the first quarter of 2021. But the world has changed since early last year, when Wall Street turned on tech and an extended bull market came to a halt. AWS revenue increased 12% in the quarter, a slower pace of expansion than what was reported by smaller rivals Microsoft Azure and Google Cloud.

Persons: Andy Jassy, Jeff Bezos, Bezos, Jassy, we've Organizations: Amazon, Seattle, Wall, Amazon Web Services, AWS, Microsoft, Google Locations: Seattle

☆ Alphabet's stock is having its worst day in a year after cloud revenue missed estimates
▼ + stars: | 2023-10-25 | by ( Jake Piazza | In | ) www.cnbc.com time to read: +2 min

Alphabet shares fell the most in a year on Wednesday after revenue in the company's Google Cloud unit trailed analyst estimates. Its cloud miss was a stark contrast to Microsoft's earnings, which showed accelerating growth in the company's Intelligent Cloud business. Google posted cloud revenue of $8.41 billion, compared to Street Account estimates of $8.64 billion. "The disappointment at Google Cloud contrasted with better-than-expected Azure growth at Microsoft," UBS analysts said. Jefferies analysts noted Google Cloud grew 22%, slower than the 28% growth the company posted in the second quarter.

Persons: It's, Ruth Porat, MSFT, Jefferies, Jennifer Elias, Michael Bloom Organizations: Google, Microsoft, UBS, CNBC

☆ Amazon Web Services to launch European sovereign cloud
▼ + stars: | 2023-10-25 | by ( ) www.reuters.com time to read: +1 min

3D printed clouds and figurines are seen in front of the AWS (Amazon Web Service) cloud service logo in this illustration taken February 8, 2022. REUTERS/Dado Ruvic/Illustration/File photo Acquire Licensing RightsSTOCKHOLM, Oct 25 (Reuters) - Amazon (AMZN.O) Web Services (AWS) said on Wednesday it will launch a sovereign cloud in Europe for government and customers in highly regulated industries. The sovereign cloud will store data on servers located in the European Union, and only EU-resident AWS employees will have control of the operations and provide support, the cloud-computing division of Amazon said in a statement. Microsoft (MSFT.O) and Oracle (ORCL.N) have also launched their cloud versions for European government customers. AWS will launch first in Germany and make its service available to all European customers.

Persons: Dado Ruvic, Supantha Mukherjee, Christopher Cushing Organizations: REUTERS, Rights, Services, European Union, Amazon, European, Microsoft, Oracle, Thomson Locations: Rights STOCKHOLM, Europe, European Union, Germany, Stockholm

☆ Data center firm Equinix trims annual revenue forecast on weak corporate spending
▼ + stars: | 2023-10-25 | by ( ) www.reuters.com time to read: +2 min

The logo of Equinix is pictured at the entrance of a data center in Pantin, outside Paris, France, December 7, 2016. REUTERS/Benoit Tessier/File Photo Acquire Licensing RightsOct 25 (Reuters) - Data center company Equinix (EQIX.O) trimmed its annual revenue forecast on Wednesday on worries that a tough macroeconomic environment would prompt companies to scale back their plans for cloud-based infrastructure. The Redwood City, California-based company expects annual revenue between $8.17 billion and $8.21 billion, compared with its prior outlook of $8.17 billion to $8.25 billion. Analysts on average expect annual revenue of $8.20 billion, according to LSEG data. For the third quarter, the company posted revenue of $2.06 billion, which was in line with analysts' estimates, according to LSEG data.

Persons: Benoit Tessier, MoffettNathanson, Raymond James, Jaspreet Singh Organizations: REUTERS, Thomson Locations: Pantin, Paris, France, Redwood City , California, Bengaluru

☆ The startup extinction wave is rising and it's beginning to wash over the cloud industry
▼ + stars: | 2023-10-25 | by ( Alistair Barr | ) www.businessinsider.com time to read: +4 min

Startup shutdowns will continue at an elevated pace for the next 2 to 3 quarters, according to Peter Walker, head of insights at Carta. There's one big caveat to these concernsThe generative AI boom is firing up demand for AI cloud services. And they're using some of that new money to spend on AI cloud services. The company's cloud growth was healthy in the third quarter, helped by demand for new AI services. The company has been rolling out a slew of AI cloud offerings lately.

Persons: It's, —, Carta, Peter Walker, Bernstein, Ruth Porat, Amy Hood, they're, we'll Organizations: Service, Carta, Services, Google, Amazon, Microsoft

☆ Amazon launches European 'sovereign' cloud as EU data debate rages
▼ + stars: | 2023-10-25 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +2 min

Amazon Web Services European Sovereign Cloud will be located within Europe and will be separate to the U.S. technology giant's other cloud operations. As government agencies and critical businesses increasingly move their operations to public cloud operators, like Amazon or Microsoft , there is growing concern in the EU that data is being stored on the servers of non-European firms. Some cloud features may require data to be transferred to and from the EU. And there is a growing worry among businesses and lawmakers that this data could be accessed by entities outside of the EU. Amazon's sovereign cloud is likely an attempt to allay some of those fears.

Persons: Joan Cros Organizations: Web Services, Mobile, Nurphoto, Getty, Amazon Web Services, Sovereign, European Union, EU, Microsoft Locations: Amazon, Barcelona, Spain, Europe

☆ Microsoft is in a stronger position in taking share against Amazon, says Jefferies' Brent Thill
▼ + stars: | 2023-10-25 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMicrosoft is in a stronger position in taking share against Amazon, says Jefferies' Brent ThillBrent Thill, Jefferies analyst, joins 'Squawk on the Street' to discuss Alphabet's quarterly earnings call, the read-through from Microsoft's cloud business to AWS, and concerns around Google's spending.

Persons: Jefferies, Brent Thill Brent Thill Organizations: Microsoft, Amazon, Jefferies

Google Cloud generated third-quarter revenue of $8.41 billion, compared with $6.87 billion in the year-ago quarter. By contrast, revenue from Microsoft's Intelligent Cloud unit, which houses the Azure cloud computing platform, grew to $24.3 billion, compared with analysts' estimate of $23.49 billion, LSEG data showed. Azure revenue rose 29%, higher than a 26.2% growth estimate from market research firm Visible Alpha. Within the company's advertising segment, YouTube ads reported revenue of $7.95 billion compared with $7.07 billion last year. Revenue for the quarter ended Sept. 30 stood at $76.69 billion, compared with estimates of $75.97 billion, according to LSEG data.

Persons: Paresh Dave, Jesse Cohen, Akash Sriram, Max A, Anil D'Silva, Aurora Ellis Organizations: REUTERS, Google, Alpha, Microsoft, Revenue, Thomson Locations: Mountain View , California, U.S, , California, Bengaluru, Max, San Francisco

Microsoft's chief financial officer Amy Hood said on a conference call with analysts that higher-than-expected AI consumption was responsible for a 3 percentage point boost to its cloud business. Alphabet has prioritized snaring AI startups as customers for its cloud division, while Microsoft has relied on its existing relationships to secure larger customers. Azure revenue rose 29%, higher than a 26.2% growth estimate from market research firm Visible Alpha. RBC Capital Markets has previously estimated that Microsoft will clock over $3 billion in revenue from generative AI offerings this fiscal year. Quite surprising to see strong growth reacceleration in the Azure Cloud segment, which is clearly driven by AI-as-a-service related demand," said Global X analyst Tejas Dessai.

Persons: Microsoft's, Bob O'Donnell, Bing, Bard, Amy Hood, Krishna Chintalapalli, capex, Akash Sriram, Anna Tong, Max Cherney, Yuvraj Malik, Greg Bensinger, Stephen Nellis, Sayantani Ghosh, Sonali Paul Organizations: Microsoft, Wall, Microsoft's, TECHnalysis, Parnassus Investments, DAZZLES, Alpha, RBC Capital Markets, Reuters Graphics Microsoft, Tejas Dessai, AWS, Thomson Locations: Bengaluru, Anna, San Francisco

☆ Stocks making the biggest moves premarket: Spotify, RTX, Coca-Cola and more
▼ + stars: | 2023-10-24 | by ( Pia Singh | ) www.cnbc.com time to read: +3 min

General Motors — General Motors shares were up more than 1% in the premarket after the automaker posted third-quarter earnings and revenue that beat analyst expectations. Spotify — Shares shed 2.5% in early morning trading, despite Spotify's third-quarter earnings topping expectations. Coca-Cola — Coca-Cola reported adjusted third-quarter earnings of 74 cents per share on revenue of $11.91 billion. RTX — The aerospace and defense company soared 8.1% after reporting higher-than-expected earnings and revenue, compared to forecasts from LSEG. RTX posted earnings per share of $1.25 on quarterly revenue of $18.95 billion, while analysts expected earnings per share of $1.21 on $18.59 billion in revenue, according to LSEG.

Persons: LSEG, Piper Sandler, RTX, Morgan Stanley, CNBC's Hakyung Kim, Sarah Min Organizations: Motors — General Motors, GM, United Auto Workers, Spotify, Bank of America, MoffettNathanson, —, 3M, Beverage, Barclays — U.S, Investors

☆ How options traders are setting up for the major tech earnings this week
▼ + stars: | 2023-10-23 | by ( Michael Khouw | ) www.cnbc.com time to read: +15 min

Big Tech earnings This week is less about reading between the lines/through results, and contextualizing management comments, but rather it's about the market itself. AI - AI - AI! The options market is implying an earnings related move of 4.7%. Our options market sentiment score for GOOG/GOOGL is 80th percentile - which one may think of like a score/grade, so a B- in terms of options sentiment. Call open interest is 15% higher than put open interest, our options market sentiment score is 83% so B/B- territory.

Persons: ChatGPT, Bing, it's, AMZN, Mark Zuckerberg's, Zuckerberg, one's Organizations: Cambridge, JPMorgan Chase, Citigroup, Bank of America, BlackRock, Goldman, Equity, Big Tech, Microsoft, Apple, Nvidia, Inc, Investors, YouTube, Amazon, Google, Gaming, Activision, Logistics, Federal Express, CNBC, ExxonMobil, Chevron, Visa, Mastercard, Merck, Co Locations: financials, Wells Fargo

☆ Here are Friday's biggest analyst calls: Nvida, Amazon, SolarEdge, Sunrun, IBM, Crocs, Meta, Disney & more
▼ + stars: | 2023-10-20 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

Bank of America reiterates Meta as buy Bank of America said it's bullish heading into earnings next week. UBS upgrades Merck to buy from neutral UBS said Merck has an "undemanding" valuation and robust pipeline. UBS reiterates Ralph Lauren as buy UBS said the stock is best positioned for AI. UBS reiterates McDonald's as buy UBS said the stock remains attractively valued. Bank of America reiterates IBM as buy Bank of America said it's standing by its buy rating heading into earnings next week.

Persons: JPMorgan, Jefferies, Goldman Sachs, Goldman, it's, Merck, Stephens, Ralph Lauren, McDonald's, Cognizant, TSMC, Deutsch, Redburn, Raymond James Organizations: JPMorgan, Nvidia, Disney, Bank of America, Meta, UBS, Merck, Deutsche Bank, Union Pacific, Deutsche, IBM, Citi, Taiwan Semiconductor, Management, Deutsche Bank downgrades, Microsoft, Brands, Mattel, Disney Princess, of America Locations: China

☆ Music publishers sue Amazon-backed AI company, accusing it of 'systematic and widespread' infringement of song lyrics
▼ + stars: | 2023-10-19 | by ( Chris Johnston | ) www.businessinsider.com time to read: +4 min

The Amazon-backed AI company is accused of "systematic and widespread infringement" of song lyrics. AdvertisementAdvertisementThe AI company that Amazon recently took a $4 billion stake in is being sued by a trio of music companies, which have accused the startup of "systematic and widespread infringement of their copyrighted song lyrics." The suit against Anthropic was filed in Nashville on Wednesday by Universal Music Group Publishing (UMGP), along with Concord Music Group and ABKCO. UMGP is part of Universal Music Group, the world's biggest music company. The AI company is also accused of infringing material under copyright even when not specifically asked to do so.

Persons: —, Anthropic, Claude, Katy Perry, Matthew J . Oppenheim Organizations: Universal Music Group Publishing, Nashville Wednesday, Business, Service, Amazon, Wednesday, Concord Music, Universal Music Group, Oppenheim Locations: Nashville, UMGP, San Francisco, Anthropic

☆ Here are Thursday's biggest analyst calls: Tesla, Netflix, Best Buy, Amazon, First Solar, Disney & more
▼ + stars: | 2023-10-19 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

"Based on our analysis, we see FIS as undervalued at 9x '24 P/E and upgrade to Overweight from Equal Weight." "We upgrade shares of KTB to Buy from Neutral and see 22% upside to our new $56, 12-month price target. Goldman Sachs upgrades Best Buy to buy from neutral Goldman said it sees multiple expansion for the electronic retailer. Can a 'growth stock' work if earnings don't grow in 2024? JPMorgan upgrades First Solar to overweight from equal weight JPMorgan said it sees an attractive entry point for the solar company.

Persons: Goldman Sachs, Goldman, Lee, Morgan Stanley, Tesla, Oppenheimer, it's bullish, Jefferies, CrowdStrike, we've, outperforming ytd, Bernstein, Disney, Wells Organizations: Street, Barclays, Fidelity National Information Services, Brands, Nike, Netflix, Disney, ESPN, Citi, Microsoft, UW, NA, Deutsche Bank, Starbucks, Deutsche, Bank of America, of America, JPMorgan Locations: destocking, Mexico, Wells Fargo, China, OW, Aptiv

☆ Here are Wednesday's biggest analyst calls: Nvidia, Microsoft, Apple, Amazon, Arm, Meta, Ulta & more
▼ + stars: | 2023-10-18 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

KeyBanc initiates Arm Holdings as overweight Key said it sees "meaningful market share gains" for Arm. " Bank of America reiterates Microsoft as buy Bank of America said Microsoft remains a top pick heading into earnings next week. Deutsche Bank reiterates Ulta as buy Deutsche said despite softening beauty sales, Ulta remains "compelling." "After tripling its market share in China in the last decade, NetEase is emerging as a global video games content powerhouse by forming synergistic partnerships with gaming industry veterans globally that will likely drive a similar runway for its global market share." "As we had anticipated (although we thought it would come in January), ASML reset expectations for CY24 to flat revenue growth vs prior guide of 'growth.'"

Persons: Wedbush, Key, IoT, Raymond James, Brinker, FWRG, Jefferies, Ulta, Morgan Stanley, NetEase, Redburn, Guggenheim, Doug McMillon, Bank of America downgrades Sherwin, Williams, Sherwin, Ecolab, McDonald's Organizations: UBS, Apple, Citi, Nvidia, NVIDIA, Holdings, ARM, JPMorgan, Bank of America, Microsoft, Jefferies, Deutsche Bank, Deutsche, Avis Deutsche, Walmart, of America Locations: China, Europe, Japan, Dutch, ESTC, Brazil, underperform

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