AMZN - Embedded Expectations Analysis - 2021 08 19
Amazon.com, Inc. (AMZN:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 47.7x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management may have concerns about AWS growth, their fulfillment program, and their revenue run rate.Specifically, management may have concerns about the noticeable changes in their revenue run rate, growth rate declines for AWS, and the progress of their Fulfillment by Amazon (FBA) program. Also, they may lack confidence in their ability to maintain their revenue growth rates and Prime member benefits utilization. Finally, they may be exaggerating the cost-savings and agility benefits of AWS and the efficiency of their fulfillment centers and operations, and they may lack confidence in their ability to meet their building opening plans for H2 2021.
Amazon.com serves consumers through its online and physical stores. The company also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, and Ring, and the company develops and produces media content. The company operates customer service centers and provides programs that enable sellers to grow their businesses, sell their products in its stores, and fulfill orders through the company The company serves developers and enterprises of various sizes, including start-ups, government agencies, and academic institutions, through its Amazon Web Services segment, which provides a set of global compute, storage, database, and other service offerings. The company also provides services, such as advertising.
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