Showing posts with label AMAZON. Show all posts
Showing posts with label AMAZON. Show all posts

Tuesday, 28 April 2015

NASDAQ: Amazon soars after earning release

I fail to fathom the US stock market. Amazon (NASDAQ: AMZN) was trading at USD 445 (24-4-2015), jumped from USD 390 on the day preceding the earning release. The "dumbfounding" thing is, the net profit of the latest fiscal report is a net loss of USD 57M / EPS of USD -0.12 (compared with a net gain of USD 108M / EPS of USD 0.23).

Yes, of course you cannot look at net profit alone in isolation from other figures. The revenue jumped 49% to USD 1.6B. The operating cash flow also increased significantly. The main reason for this is reported to be due to the outperforming cloud services and strong retail sales.

Having bought something from them once, I am very impressed by Amazon. The item is of great value, even after including the "international shipping" (which is really not much) and the weakening Australian Dollar. 50% discount is very common. For example, PNY Turbo 128GB USB 3.0 Flash Drive is now selling at USD 40 shipped to Australia. This is equivalent to  AUD 51.2 (based on the current rate of 1 USD: 1.28 AUD). The cheapest you could find on Ebay is AUD 68. The example goes on and on, and applies for all sorts of items.

Amazon has invested a lot to provide all kinds of new services, with a hope that in years to come, they will gain the "market share" and what they have invested in will pay back in avalanche.

According to the earning forecast, even in year 2018 the EPS would only be USD 8.29, i.e. the PE is still sky high. Perhaps this is something you can only find in a "matured" market, that considering really long term growth of a company, Amazon worths to trade at this price. This is something you cannot find in KLSE, and this excites me to involve in NYSE and NASDAQ, a market that really requires a sharp investing insight.