|Bid||1,963.54 x 1000|
|Ask||1,964.11 x 800|
|Day's Range||1,960.96 - 1,974.89|
|52 Week Range||1,307.00 - 2,050.50|
|Beta (3Y Monthly)||1.62|
|PE Ratio (TTM)||82.02|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
JPMorgan analysts think Amazon’s revenue will grow during the remainder of 2019 after a string of quarters with record profits.
JBG Smith Properties is proposing to add roughly 1,000 units to its RiverHouse apartment complex in Pentagon City as the Bethesda-based developer ramps up its multifamily plans in the shadow of Amazon.
Cloud infrastructure platform Azure’s revenue growth decelerates again in its latest quarterly earnings, but its margins are improving.
Amazon.com Inc. said Monday that it has signed a five-book deal with best-selling author Dean Koontz, with the first book, "Devoted," coming next spring. Before that, a collection of six short thrillers called "Nameless" will be available for free to Prime members and Kindle Unlimited users on November 12. "Devoted" will introduce Megan Bookman, an artist and widow, her gifted golden retriever Kipp, and her autistic son Woody, who is after revenge for his father's murder. Amazon has previously published one of Koontz's short stories, "Ricochet Joe," on its Amazon Original Stories platform. It went on to be an Amazon Charts best-seller. Amazon stock is up 31% for the year to date while the S&P 500 index is up 19% for the period.
Ebay Inc. said Monday that it has named two new executives, who will be joining the executive leadership team. Pete Thompson, eBay's new chief product officer, joins from Amazon.com Inc. where he was vice president of Alexa Voice Service. Mazen Rawashdeh, who previously spent eight years with eBay between 2003 and 2011, has been appointed eBay's chief technology officer. He previously served as a vice president at Twitter Inc. and spent four years as an angel investor and tech advisor. Ebay stock has edged up 0.8% in Monday premarket trading, and has rallied 43.3% in 2019. The S&P 500 index has gained 18.7% this year so far. Read: Ebay shares rise after earnings beat but Amazon looms large
STMicroelectronics' (STM) Q2 results are likely to gain from robust products & solid execution. Uncertainty in some of the end-markets served and the ongoing U.S.-China trade war pose serious threats.
Alphabet's (GOOGL) focus on artificial intelligence and cloud is likely to boost second-quarter results. However, higher expenses and litigation charges are headwinds.
Congress, with some goading from their competitors, appears eager to apply antitrust enforcement to Facebook (FB) , Apple (AAPL) , Google (GOOG)(GOOGL) and (AMZN) (FAGA). This would be a terrible misuse of the law for market-dominance problems that emerging technologies will resolve and for privacy and security issues where bigness contributes little. To put one complaint aside — the increasing size of American tech companies has not caused stagnant wages.
People across the country have reported receiving dozens of packages or more from Amazon that they never ordered.
We highlight big-brand companies set to beat earnings in one of the busiest earnings stretches this season. These companies boast stable cash flow and have established business models.
(Bloomberg Opinion) -- Kroger Co., the giant but aging supermarket chain, has unleashed a flurry of initiatives to ensure it won’t get thumped in a post-Amazon-buying-Whole-Foods world: It is revamping locations, bought a meal-kit company, and sold off its convenience-store business. Its biggest gamble, though, is a partnership with British online grocer Ocado Group Plc. The two plan to build as many as 20 automated grocery warehouses in the U.S. to help Kroger turbocharge its e-commerce operation.Grocery has proven a uniquely tough business to bring into the online era. Orders often have dozens of items – some frozen, some cold, some room temperature – and much of the inventory is perishable. That simply makes for a different challenge than the one Amazon.com Inc. has successfully tackled by getting a single laptop computer or phone charger on your doorstep in one day.Ocado has focused specifically on digital grocery shopping for its entire corporate life, and it shows. At its newest online grocery fulfillment center outside London, 1,000 robots zoom around a grid at a speed of four meters (13 feet) per second, extending a gripper to pick up and transport bins of groceries. The system strips out labor costs and enables human workers to pack about 600 items per hour. Every aspect of the fulfillment process is designed for the unique quirks of grocery, including systems that cue workers about what items in a given order they should put in a single grocery bag. (This ensures, for example, that something heavy doesn’t plop onto a dozen eggs.) Ocado estimates its system saves one hour of labor for every 50-item order – no small thing in a segment of retail with notoriously thin profit margins.There is a real benefit to specializing in solving the grocery conundrum, as Ocado has done. The company’s sales increased 12% last year to 1.6 billion pounds ($2 billion), according to its annual report, and its active customer count increased 11 percent from the previous year. So I’m confident that Ocado will improve Kroger’s game and equip it with advantages in the battle for U.S. market share. Ocado’s system will enable it to fill orders especially quickly and has a high level of accuracy – both important contributors to customer satisfaction. Down the road, it’s not hard to envision even more labor costs getting stripped out of Ocado’s system, enhancing the model’s profitability. But timing is everything in the fast-changing online grocery world. And right now, Amazon and Walmart Inc. are leading the pack.Neither Amazon nor Walmart has a system with the exact sort of wizardry of Ocado’s; even so, each is exploring its own ways of using automation to help with profitability and customer experience. Walmart is testing driverless cars for grocery delivery, and Amazon recently showed off some new warehouse robots of its own. It will take Kroger up to five years to build out the fleet of Ocado warehouses it has committed to building. I worry that won’t be fast enough to vault it past Walmart and Amazon in the race for online grocery supremacy – no matter how advanced and efficient Ocado’s system is.Take, for example, the specialized delivery vehicles Ocado has developed. They can be loaded with racks of grocery-filled bins designed to fit practically every inch of available cabin space and they have a separate compartment for cold items. A routing algorithm helps ensure they are loaded in an order conducive to a driver’s delivery path and that those routes are optimized for efficiency. This sounds way more efficient than some of the solutions Walmart and Amazon use these days, where a DoorDash or Amazon Flex contractor-courier loads up the trunk of his sedan with groceries. But that efficiency gain is only useful if Kroger can get the density of orders to make it count.Investors have already punished Kroger this year for disappointing on comparable sales growth and its annual profit forecast. It’s hard to assess how much this project might further test their patience, especially because the companies haven’t offered specifics on how they will share the costs of establishing and maintaining these facilities. But we know it won’t be cheap: Kroger has said it is investing $55 million to build the first of the Ocado-powered fulfillment centers.It might help if Kroger talked up other ways the warehouses could potentially support its business later, such as one day sending replenishment stock to nearby stores. And the new warehouses, in some cases, will be positioned to potentially expand Kroger’s addressable market. One of the first facilities Kroger committed to building is in central Florida, a market that Bloomberg Intelligence analyst Jennifer Bartashus points out is one where regional heavyweight Publix Super Markets Inc. is beloved and ubiquitous and Kroger doesn’t have much presence. Kroger sees opportunity to crack this market with a compelling online offering.Overall, Kroger is better off for having partnered with Ocado. But I suspect it will turn out this arrangement doesn’t completely jolt the broader U.S. grocery industry the way it could have if it had been forged three or five years ago, before the competition had fully awakened to the e-commerce opportunity. Better late than never. To contact the author of this story: Sarah Halzack at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Toys ‘R’ Us is coming back in the U.S. with two stores, but one expert says the industry has already moved on.
Amazon.com Inc. said Monday it will create more than 2,500 full-time jobs in Ohio as it plans to open two new fulfillment centers. The e-commerce and cloud giant plans to open one center in Akron and the other in Rossford. Each center will be more than 700,000 square feet, will ship small items such as books, electronics and toys and will operate with advanced robotics. Amazon's stock, which gained 0.5% in premarket trading, has rallied 31% year to date through Friday, while the Dow Jones Industrial Average has advanced 16%.
(Bloomberg) -- Negative interest rates have created a European banking industry that’s ripe for consolidation, according to the chief executive officer of the biggest Nordic bank. But bankers have lost their nerve, so the mergers aren’t happening.Casper von Koskull, the CEO of Nordea Bank Abp, says a lack of confidence within his industry is now the “biggest impediment” to the cross-border mergers he says are needed.Negative interest rates “should actually accelerate” consolidation, he said in an interview. But the “much larger question” now facing the industry is one of insecurity, in part due to a tougher regulatory environment, he said.Nordic banks have been dealing with negative rates since 2012, when Denmark’s central bank first introduced the tool to defend the krone’s peg to the euro. Sweden’s Riksbank went below zero a few years later, after a bout of deflation.In the euro area, the European Central Bank is signaling interest rates will be held lower for longer, weighing on banks’ ability to generate income from lending, leaving them without a cushion to fall back on when income from trading dries up. Over the next few weeks, earnings from some of Europe’s largest banks are set to offer a peek into the negative-rates abyss. That, combined with several waves of stricter financial regulation, has created a banking environment that von Koskull warns is too fragmented.Trying to MergeIn Germany, Deutsche Bank AG and Commerzbank AG in April shelved talks to combine, citing execution risks. Since then, M&A speculation around Commerzbank has touched on names including ING Groep NV and UniCredit SpA. Much of the logic behind such mergers centers on a goal to reduce costs. A particular focus is technology, as banks begin to face competition from big tech firms like Apple Inc., Amazon.com Inc. and Alphabet Inc.’s Google.Nordea, itself a product of mergers between roughly 300 Nordic banks over two centuries, held preliminary talks with Dutch authorities in 2016 about joining forces with ABN Amro Group NV. The talks didn’t lead anywhere. There’s no scope for Nordea to take part in major moves over the next three years, von Koskull said earlier this year.Nordic banks had for years been widely regarded as some of Europe’s strongest, best capitalized and safest. But the sector now looks increasingly beleaguered, with scandals also playing a prominent part. Last year, one of the worst performing financial stocks in Europe was Danske Bank A/S. This year, it’s Swedbank AB.ScandalsDanske is dealing with the fallout of a vast money-laundering scandal. But a more recent embarrassment stems from its decision to overcharge retail investors. The Danish financial regulator hinted that negative rates probably played a role in tempting the lender to offer a product on which it could charge fees that compensate for interest rates below zero.“Negative rates actually do hurt bank business models,” von Koskull said. “As such, in an industry like in Europe where we have overcapacity, consolidation would be very natural, particularly domestic consolidation, but also cross-border consolidation.”Nordea, which is the biggest Nordic bank by assets, signaled on Thursday it may need to start scaling back its shareholder rewards in an effort to adapt to the tougher environment. The market responded by driving its shares down as much as 7.4%. Nordea also published second-quarter total operating income that fell short of even the lowest analyst estimates, in part as sub-zero rates continue to weigh on interest income.(Adds upcoming European bank earnings in 5th paragraph.)\--With assistance from Nejra Cehic and Manus Cranny.To contact the reporter on this story: Kati Pohjanpalo in Helsinki at firstname.lastname@example.orgTo contact the editors responsible for this story: Tasneem Hanfi Brögger at email@example.com;Niklas Magnusson at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Amazon.com shares were rising slightly in premarket trading Monday after analysts at KeyBanc and Deutsche Bank raised their price targets on the company. KeyBanc now has a $2,200 price target on Amazon, up from its previous view of $2,100, while Deutsche Bank has a $2,515 price target, up from $2,315. Amazon shares were trading at $1,972.95, up 0.4%..
Fixing the financial standing of the U.S. mail service isn’t easy, but it could turn into a big benefit to publicly traded parcel shippers UPS and FedX—a benefit that dwarfs current concerns about new competition from Amazon.
Since the end of the well-publicized Amazon HQ2 search in November, the median sale price for nearby detached homes has soared almost 22%
The dollar index, was barely changed at 97.179 after gaining 0.35% last week. "I think we've seen a bit of safe-haven flows back into the dollar," he said, adding it could rise further if the Federal Reserve cuts interest rates by only 25 basis points, as expected. On the policy front, markets generally expect central banks to either cut rates or keep settings accommodative, starting with the European Central Bank (ECB), which meets on Thursday followed by the Bank of Japan and then the Fed next week.
What is Vaudeville? Vaudeville is an experimental theatrical journalism experience, brought to you by the FT Alphaville blogging team of the Financial Times. Like the Vaudeville of times gone by, our event will be a kind of variety show, featuring comedy, music, film, financial puppeteering, interviews, “influencers” and even a sermon from a pastor-turned-computer scientist-turned bete noire of the world of crypto (if you know you know).
Amid all the talk of antitrust, government regulation and cryptocurrency plans, it might be nice for Big Tech just to focus on earnings this week — unless they are bad, of course.
Business Journal Managing Editor Rob Johnson recaps the week in Seattle business news, including exclusive interviews with three prominent education leaders and headwinds facing the Salesforce-Tableau deal.
Amazon.com, Inc. (AMZN) has redefined the way consumers shop for goods. Anyone that didn’t bet on Jeff Bezos and AMZN can’t help but feel that they might have missed an opportunity. The stock is up 448% over the last five years, with share prices rising past $2,000 last week. With many analysts saying AMZN has the momentum to continue this upward trajectory, investors are wondering if they should also buy the stock before its July 25 earnings release. Q2 Earnings GuidanceIn management’s Q2 2019 guidance, they are expecting to see revenue within the range of $59.5 billion and $63.5 billion, up 12.5% to 20% year-over-year. According to consensus estimates, EPS should be $5.58, up from $5.07 from the year- ago quarter. Operating income could be between $2.6 billion to $3.6 billion, which represents a decrease in growth by 13% from the year-ago period. This means operating margin should be between 4.1% and 6.1%, falling from 7.4% in Q1. CFO, Brian Olsavsky, points to the $800 million spent in Q2 to upgrade Prime’s free two-day shipping benefit to free one-day shipping as the reason for lower margins. “We're currently working on evolving our Prime free two-day shipping program to be a free one-day shipping program. We're able to do this because we've spent 20-plus years expanding our fulfillment and logistics network, but this is still a big investment and a lot of work to do ahead of us,” he said. Renewed Focus on ProfitabilityDespite a rocky year for AMZN share prices, the company has been shifting focus towards achieving sustained and consistent profitability. Amazon’s Prime Day is an event in and of itself rivaling that of Black Friday and Cyber Monday. Last year’s Prime Day was the company’s largest shopping event in its history. Consumers bought over 100 million products, bringing in $6 billion. This almost matched the entire retail industry’s combined $6.22 billion in online sales on Black Friday.Even on low-margin business categories, AMZN has figured out a way to make a profit. The company charges grocery brands if sales from their promotional products result in a loss. It also blocks ads for unprofitable products, giving it the ability to force merchants to order from less expensive suppliers and change to more affordable packaging. Amazon Business Model is GrowingThe company is working to expand Amazon Web Services (AWS), its cloud computing platforms for individuals as well as enterprises of all sizes. On June 24, it announced that the AWS Control Tower and AWS Security Hub are now available to customers. These products simplify the process of setting up, securing and monitoring cloud environments for its corporate clients. Last year, the company announced that these new product offerings are a part of a larger effort to lower the barrier of entry for large enterprises that want to begin using the cloud. The company hopes the products will also reduce friction for existing customers that want to expand their cloud footprint.Its cloud service has been essential in AMZN’s overall profit growth. In the previous quarter, AWS made up 13% of the total revenue at approximately $7.7 billion, a 41% year-over-year jump. Half of the total operating income was attributed to AWS, increasing 59% to $2.22 billion year-over-year. The company is also growing the advertising segment of its business. On May 31, AMZN announced that it is set to acquire Sizmek’s ad server and Dynamic Creative Optimization unit. The technology will help personalize ads using data. A Fair Valuation Based on Cash Flow and GrowthWe can also look at operating cash flow to measure how well AMZN is performing, as the company is known for making heavy investments in growth opportunities. Operating cash flow reached $34.4 billion for the trailing twelve months, an 89% increase year-over-year. Free cash flow more than tripled, up to $23 billion year-over-year. While some investors may be wary of AMZN’s hefty price tag, five-star financial blogger, Bret Kenwell, argues that the valuation is justified. He writes, “Its strong earnings growth (estimates call for 35% growth this year and 40% growth in 2020) makes the valuation more palpable. Even better? AMZN has been crushing earnings estimates over the last seven quarters, while its immense cash flow buoys any financial worries from investors.”Top analyst, Scott Devitt, agrees that there’s more upside for AMZN. He maintained his Buy rating on the stock and $2,300 price target on July 19, suggesting 17% upside potential. “We expect continued strength in Amazon’s high-margin businesses, AWS and Advertising, which should continue to be a tailwind for operating margin and allow the company to invest more heavily in its retail capabilities, including one-day delivery. Amazon is well- positioned as the leader in retail/cloud, and should continue to gain share in the advertising market as it adds new tools/services, makes strategic acquisitions (Sizmek), and leverages its valuable consumer data,” he said. Devitt has a 71% success rate and 23% average return per rating. On July 18, another analyst, Tom Forte, reiterated his Buy rating and $2,550 price target. He believes share prices could soar by 30% over the next twelve months. “We see two potential catalysts for shares over the next 12-month period: 1) stronger than expected operating results from the company’s cloud computing efforts, which we believe remains the primary driver of its share price and 2) due to its increasing mix of highly-profitable third-party sales," he said. The Bottom Line on AMZNThe sentiment surrounding AMZN is resoundingly positive. The stock boasts a ‘Strong Buy’ analyst consensus and a $2,260 average price target, suggesting upside potential of 15%.