Nothing particularly huge on Amazon’s scale, but this probably indicates something. 
https://x.com/StockMKTNewz/status/1833646914442612858
8 Likes
Based on the tweet, you might think that Amazon’s future looks pretty okay, but also challenging at the same time. 
Strengths include cloud services and expansion into other areas, but competition and the stock’s high valuation pose challenges. However, margin growth could turn the sentiment positive again. 
https://x.com/Quality_stocksA/status/1835239481554682142
2 Likes
These figures probably don’t refer to the same thing:
‘Leader in the Cloud (34% market share …)’,
‘Challenged on Cloud (~4% market share …)’?
1 Like
So it indicates that AWS is the market leader in cloud services with 34/100%, but it has lost four percent of its market share to competitors.
The headings above explain how the bulls, i.e., those who are optimistic about the stock, see the situation. That is, the company is the market leader, which means that Microsoft and Google are trailing in market share.
Meanwhile, the bears, or those who have a negative outlook on the stock, see that Amazon is gradually losing its leadership because they have lost market share (-4%) to Google and Microsoft.
Hopefully, I was able to clarify this as clearly as possible.
7 Likes
Well, that’s clear now! Thanks a lot. So it was -4% and not about (~) 4%. Must be my eyesight, apparently. 
1 Like
Here is a pretty good tweet thread about Amazon; there shouldn’t be much new for those who have followed the company more closely.
https://x.com/MMMTwealth/status/1836061312557760900
The rest of the tweet thread
6 Likes
Andy Jassy wrote a sharp letter about how Amazon’s 350,000 office workers and developers are to return to a five-day work week at the office. Furthermore, during the rapid growth of recent years, Amazon’s agile decision-making culture has become too bloated with managers. Rapid growth has also weakened the most important thing: Amazon’s obsessive focus on what is best for the customer. This is how bureaucracy manages to accumulate even in the best companies!
“As we have grown our teams as quickly and substantially as we have the last many years, we have understandably added a lot of managers. In that process, we have also added more layers than we had before. It’s created artifacts that we’d like to change (e.g., pre-meetings for the pre-meetings for the decision meetings, a longer line of managers feeling like they need to review a topic before it moves forward, owners of initiatives feeling less like they should make recommendations because the decision will be made elsewhere, etc.).”
“To address the second issue of being better set up to invent, collaborate, and be connected enough to each other and our culture to deliver the absolute best for customers and the business, we’ve decided that we’re going to return to being in the office the way we were before the onset of COVID”
The full letter can be found here; I recommend Amazon enthusiasts read it!
11 Likes
Bezos once told shareholders that even though the company’s stock value had fallen significantly, the company itself was stronger than ever; in addition, he said that the number of customers and sales had grown significantly. He also mentioned that the company had expanded its operations internationally and that customer satisfaction was very high. He said that in the long run, the company’s value would rise.
This was a little while ago.
13 Likes
A familiar story, but worth repeating: Amazon is requiring employees to return to the office, which may lead to resignations. In this way, Amazon saves money on severance costs. According to the tweet, this is a common practice in big tech companies when they want to reduce headcount. Many consider this a bad tactic, as the best employees—especially the highly skilled and sought-after ones—might be the first to leave.
https://x.com/didier_lopes/status/1836272696092422308
6 Likes
Just thinking about why I shouldn’t add Amazon to my portfolio?
Amazon has managed to secure a stable financial foundation despite operating in highly competitive and rapidly evolving markets. The company has shown strong growth figures; especially e-commerce and cloud services have increased revenue. The gross margin was slightly lower at one point, but that was mainly due to new investments in technology, so that side is also in good shape. AWS, or Amazon Web Services, is in a key position, at least in the near future, especially regarding earnings improvement.
The company’s growth outlook is promising. The company is investing in technology and AI, for example, which helps with long-term growth opportunities. Projects like the satellite-based internet service “Project Kuiper” and other new expanding cloud services offer new revenue streams, though I’m not particularly well-versed in these and am just parroting what others say. A new driver is the investment in the logistics network, which could further increase the company’s dominance against its competitors; delivery speed improves, which automatically leads to a better customer experience – and that, if anything, increases the competitive advantage.
The company’s challenges are largely familiar, for example, Chinese companies on their platforms, and tough competitors are everywhere. Then, of course, general economic instability and other factors add challenges, but it’s the same for everyone else. Legislation and occasionally “unique” personnel policies might lead to unfortunate downward spirals for the company as well.
In short: A stable grower that will likely succeed in the long run through innovation and dominance.
What’s going on right now:
The company’s results for the second quarter of 2024 show strong financial development. The company’s sales grew by 10 percent compared to the previous year, rising to $148 billion. Growth was particularly strong in AWS cloud services, where sales grew by 19 percent and reached over $26 billion. In North America, sales grew by 9 percent and internationally by 7 percent, but it is particularly noteworthy that Amazon’s operating result more than doubled, rising to $14.7 billion, compared to “only” 7.7 billion the previous year.
Amazon’s net profit nearly doubled to $13.5 billion. This reflects the company’s successful growth and improved efficiency, despite a challenging operating environment. CEO Andy Jassy emphasized the importance of AWS in the development of cloud services and AI solutions. The future outlook is positive, and the company predicts sales will continue to grow in the third quarter.
Data center investments, as well as recent free cash flow developments and margin trends, probably say something.
The Letter
CEO Andy Jassy stated in a recent letter that Amazon is asking every leadership organization to increase the number of “individual contributors” relative to managers by at least 15% by the end of the first quarter of 2025—fewer managers then? The letter also announced significant changes to the organizational structure and operating methods. The company aims to streamline operations by reducing bureaucracy and speeding up decision-making. In addition, employees are expected to return to offices full-time starting at the beginning of next year, as has already been discussed a few times in this thread. Jassy emphasized that the changes aim to strengthen corporate culture, improve collaboration, and ensure faster response to customer needs. Or then… they actually know that people will resign, which is what the company wants through this. Many consider this a bad tactic, as the best, especially skilled and sought-after employees, may be the first to leave.
I’ve already received good bearish and bullish comments about the company. What are your thoughts? I’m most interested in comprehensive, well-reasoned arguments on the big picture and “breaking down the numbers.”
I apologize for the slightly messy text, which is based on notes (which are based on mimicking others here and there), and the text is stiff, with plenty of factual and spelling errors as usual.
Rookie is considering this American “Verkkis” (Verkkokauppa.com) for his portfolio!
P.S.
Thoughts from @Arhi_Kivilahti can be found here:
And here:
https://keskustelut.inderes.fi/t/alokas-haastattelee/35425/573?u=sijoittaja-alokas
7 Likes
A giant’s stock for cheap, I wonder if the big guys see something here they don’t like.
Are the company’s “platforms” becoming outdated compared to tough competitors, or are they falling behind in some other way, or is someone else doing better development work… 
I just bought this for my portfolio a moment ago and I’m already turning bearish.
https://x.com/TrendSpider/status/1838435693225480213
3 Likes
Here is a map showing Amazon’s various competitors in different arenas, and it is in its own way terrifying to look at.
https://x.com/simongerman600/status/1480542456240394240
Some were saying that Chinese players would be competent competitors with their platforms. If China becomes more conciliatory with the rest of the world and gradually gets its affairs in order, it certainly won’t help Amazon.
Here come the Babas and buddies.
Over time, margins may weaken for the aforementioned reasons, and specifically battles in already competitive sectors could lead Amazon down the wrong paths. Regulatory risks, legislative issues, then these investments in logistics, cloud business, and new technology might not necessarily yield as much return as has been invested + whether the company is the leading developer when others are considering these things as well.
Amazon’s “conduct” might also specifically drive the best talent elsewhere, which could be reflected in the company’s operations for a very long time, and such a problem can be difficult to tackle.
3 Likes
In the streaming business, YouTube is racing ahead, Prime is still small, and there is a clear drop visible from July to August. You can’t blame me for that yet, as I only became an owner in September.
https://x.com/EconomyApp/status/1839088802457071987/photo/1
7 Likes
Quite some growth for warehouse robots.
https://x.com/StockMKTNewz/status/1840906362412233165
EDIT:
Adding these to the same post, although I don’t put much weight on them. Then again, I liked it and shared it here, maybe because I’m underwater on this one too. 
5 Likes
Amazon ilmoitti tänään aikovansa palkata 250 000 kausityöntekijää lomakaudeksi, eli saman verran kuin viime vuonna.
Jutun ei pitäisi olla muurin takana, ja siinä on vähän muustakin kuin vain kausityöntekijöistä. 
Some forecasts are more upbeat for e-commerce. Adobe Inc. expects US shoppers to spend some $240.8 billion online in November and December, up 8.4% from the prior year.
2 Likes
It looks good for now, but the direction can always change. 
https://x.com/Quality_stocksA/status/1842075747055235274
8 Likes
According to the view cited in the tweet, Amazon could save more than $20 billion a year by using autonomous electric vehicles and electric delivery vans. This would significantly reduce fuel costs and transportation costs in general. Savings are expected to grow over time as more and more vehicles are replaced with electric and autonomous ones.
This would mean that Amazon’s profitability could improve significantly in the future.
https://x.com/BigBullCap/status/1842178821606551791
13 Likes
As usual, these English tweet threads on X are very often bullish, so it’s worth keeping that in mind when reading them.
So here is a tweet thread about Amazon and why it’s the top pick among megacaps right now.
https://x.com/thexcapitalist/status/1843651175834628343
The rest of the tweet thread
4 Likes
I own Amazon, but my Amazon “returns” are closer to Alibaba’s YTD returns than Amazon’s.
Nothing special in itself, the tweet mainly contains chart and figure comparisons.
https://x.com/ZeevyInvesting/status/1844386891132497932
Therein lies a small “thought trap” – what if Amazon’s competitors move to the same, perhaps with a delay, but nonetheless? Then competition will eat away this advantage from all operators. If a technology is freely available to all companies in the industry, it is difficult to build a more permanent competitive advantage based on it. The benefit flows mainly to consumers, primarily in the form of lower prices.
Therefore, I wouldn’t draw the conclusion that profitability would rise significantly for a longer period of time.
Consider, for example, how new advanced and fuel-saving aircraft models have benefited airlines – when everyone can use them, the competitive advantage is only temporary, and the increased profitability melts away slowly but surely through competition.
PS. The situation could even be the opposite if the new technology initially glitches and has teething problems, etc. Then the followers walk into a “ready-set table” once the manufacturers have managed to refine the technology.
PPS. And sorry, I don’t mean to be negative; this just came to mind because I’ve seen up close how there have been many difficulties in implementing new technology, and then the followers reap the rewards once the initial problems have been ironed out.
3 Likes