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Amazon.com $AMZN joins FAANG Alum Alphabet $GOOGL to report this week on Thursday, $NFLX has already reported and Facebook $FB reports Nov 1. The big questions will be the Whole Foods and intergration and hat is Jeff Bezos up to? With the Nasdaq on a tear $AMZN second-quarter earnings report is being watched eagerly.

Amazon Tattooed WholeFoods

Amazon added a little 'hip' Wholefoods to it's Digital firepower

Consensus Estimates: Analysts expect EPS $1.88 down 11% y/y and revenue $41.4 billion up 27% y/y

The Cloud - Amazon Web Services (AW

The envy of Apple, Oracle, Google, IBM and every other niche cloud provider. AWS is the leading platform in this growth market.  At this point we see no signs of AWS’s leadership position falling away. Growth rates guidance will be looked at, AWS grew revenue by 42% y/y to $4.1bn in Q2 2017 and +35% y/y growth in Q3 2017 is expected. 

Amazon's quarterly revenue growth for Q2 2017, its revenue grew 42% to $4.10 billion

Amazon Prime

Amazon has said that its most recent Prime Day was the best on record.  We would like to see more commentary here and the conversion factor from trial to long term Prime customers. 

Before the latest Prime Day, Consumer Intelligence Research Partners estimated $AMZN added 22 million U.S. members to Amazon Prime in the past year. This takes the total to 85 million. The analysis shows Amazon Prime members spend around $1,300 per year on the site. Non member customers spend aroun $700 per year they show.

CIRP estimates 63% of Amazon shoppers are Prime members. Josh Lowitz, co-founder of Consumer Intelligence Research Partners says "Amazon Prime membership basically doubled in the U.S. in the past two years." 

On average, U.S. Amazon Prime members shop at Amazon 25 times per year. In contrast, customers without Amazon Prime shop at Amazon an average of 14 times per year, CIRP said.

Brick and Mortar Acquisitions and Partnerships

Amazon has been on a buying spree with WholeFoods, talk of Amazon Moving Into Real Estate and last quarter the deal with Sears where Kenmore appliances will be sold through Amazon. Investors will be looking for updates on these and others and a clarification of just what is their strategy going forward. One I would like to hear is about the Whole Foods locations and the $400 billion plus pharmacy market.

There is also the latest retail partnership, this with Kohl’s Corporation $KSS. Amazon will  start selling smart-home products in Kohl’s stores and cater for product returns. With Whole Foods, Sear and now Kohls Amazon is stealthly building brick-and-mortar retail for it's digital base.

Third-party Sellers

Futher to the above partnerships Amazon's platform is the second-largest for them with $7billion in revenue in Q217 compared to $23.8bn in the retail business. With the hype around China and competition this business is another key for Amazon as Alibaba $BABA is plotting it's international expansion.

Amazon.com, Inc; NASDAQ: $AMZN

Oct 20 2017 at Lunch $989.15 +2.48 +.25%

  • 52 Week Range 710.10 - 1,083.31
  • Market Cap 475.0965 Billion
  • Beta 1.31 PE Ratio (TTM) 251.53
  • EPS (TTM) 3.93

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