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What Did Amazon Do This Week? - July 28th

WDADTW is the newsletter that Amazon execs read to keep up with the world of Amazon (34% of subscribe
July 28 · Issue #23 · View online
What Did Amazon Do This Week?
WDADTW is the newsletter that Amazon execs read to keep up with the world of Amazon (34% of subscribers - July ‘19). Let me know how you think it can be improved, simply hit reply or email me here.

Amazon shares dipped 3.5% despite decent numbers for Q2. With no Prime Day numbers included, sales have risen +20% to £50.9 billion in THREE months. Profits however did not meet expectations, hence the plunge. £2.1 billion (increase of 4%) which was shy of Wall Street’s desired £2.2 billion. Not helped - media-wise - by Google outperforming expectations (£31.3 billion, up 19% yoy) sending shares up 7%. Other interesting nuggets: AWS missed its target (but still racked in the dough with 37% increase yoy, $8.4 billion) and growth is now slowing (was 46% in Q4 ‘18 then 42%, meant to be 39% but was 37%), online stores revenue increased 16% yoy to $31 billion (up from 12% in Q1 '19) and revenue from third-party sellers increased 25% yoy and is up from 20% in Q1. The dip came in the same week the US’s DOJ announced a massive investigation into big tech (see the chart above and chart below for part of the reason why). Not great timing for anyone but especially Amazon because of the continuing Pentagon debacle which heated up (yes, again) this week.
After a dodgy set of Q1 results, Google is once again showing its might, resilience and ability to make a buck on less than Amazon. Proving there’s still plenty to love about Google and they aren’t giving up and inch without a fight. The reason for the jump? Likely to be connected to Google tripling their quarterly profits to £8 billion plus no major scandals of late. Investors like that sort of math and record.
Given AWS’s importance to Amazon it’s not surprising the stock took a dip but is also fair to note that Amazon’s overall value is up 30% yoy.
Full transcript of the Amazon results is here, Amazon’s PR is here.
  • Prime Day results will hit Q3, expect Amazon to bounce back before then.
  • All tech stocks are on alert following movements in the US government and EU to curtail their dominance.
  • Expect a bumpy Q3 and Q4 for Amazon thanks to economic and political pressures causing consumers to think twice about purchases and what their money can actually purchase.
Need a bespoke/full strategy on Amazon? Hit reply and let us know.

‘Carnival Row’ has already been renewed for a second season before a single episode has aired. ··· The Expanse has been renewed for a fifth season. ··· Amazon is allegedly talking with Fleabag’s creators for a third season. ··· Amazon canceled the podcast-inspired ’Lore’ after two seasons. ··· Amazon announced the creative team behind the LOTR show. ··· Amazon’s ’Modern Love’ (based on a NYT column) will premiere Oct 18. ··· Amazon put 'Transparent’ and 'Jack Ryan’ teasers out this week. ··· Amazon Studios has signed a deal with Lena Waithe and Significant Productions. ··· Advertisers can now buy Amazon Fire TV inventory through third-party vendors. ··· Prime Video is now available in VR via Oculus Rift. ··· Amazon has confirmed a raft of British talent for comedy specials. ··· Amazon Prime Video will no longer be supported on the Wii. ··· Amazon has ordered a series of 'The Bankers Wife’ from folks who wrote 'Homeland’. ··· ’Patriot’ has been cancelled after two seasons. ··· Amazon is creating a (ed - sure to be fascinating) docu-series with UK football club, Leeds United. ··· Amazon has cancelled 'Forever’, 'The Romanoffs’ and 'Too Old To Die Young’ this week. ··· ’Undone’ (and animation project of Amazon Studios) will launch in September. ··· Amazon has secured the domestic rights for the French open (tennis). ··· Dean Koontz has signed a five-book deal with Amazon. ··· Amazon is already playing the Oscars game with Eddie Redmayne project 'Aeronauts’ by moving release and theatrical window. ··· 'Avengers: Endgame’ will be on Amazon Prime Video in August. ··· Amazon Video will create three new spanish originals series by 2020. ··· John 'Jack Ryan’ Krasinski has a first-look deal now with Amazon Studios.
Some of Amazon’s workforce protested over working conditions. ··· Amazon advised customers of a specific supplement to throw away their products as they are likely counterfeit. ··· Amazon is opening two more ‘Amazon Go’ stores in Chicago.
Alexa can now tell you your bank balance thanks to new API’s. ··· Amazon’s ‘Ring’ police network came under heavy fire this week (police have to shill them). ··· Amazon released a chatbot this week that helps with alerting users to AWS problems. ··· 'Amazon Key’ is now available to all Honda and Acura drivers
Amazon’s Q2 Earnings sent stock downward despite decent results. ··· Amazon workers staged more protests and walk-outs this week. ··· Trump is allegedly being manipulated against Amazon in the Pentagon deal case. ··· Amazon has bought another 2,200 delivery vans. ··· Amazon is in trouble over undisclosed Influencer payments for Prime Day. ··· Amazon has partnered with Realogy to offer Turnkey, which connects homebuyers with Realogy agents; with each purchase, customers get $5K in free Amazon home services. ··· Amazon has been sued by Prime Inc regarding their truck logos. ··· Amazon has installed a lot of solar rooftop panels. ··· Amazon has announced a +2,000 people expansion in Ohio. ··· Amazon is expanding in Spain again with new logistics centre in Asturias. ··· Amazon Japan has released a mobile fulfilment centre. ··· The DOJ launched a massive investigation into big tech. ··· Amazon spent more than $4 million on Lobbying in Q2.
— Costco is beating Amazon and pals. [Forbes]
— Despite the bumper content section this week…Amazon is struggling in Hollywood. [Information]
— How Amazon plans to take on Spotify and Pandora. [Adage]
— Inside a ‘ninth-generation’ Amazon warehouse. [Independent]
— Amazon’s revolutionary strategy? Recycle old ideas. [Wired]
— 'Amazon has destroyed retail’ according to the US Treasury Secretary, Mnuchin. [CNN]
— Amazon needs to tame its Wild West sellers marketplace. [Bloomberg]
— Political candidates are making noise about new digital rights that will impact big tech - especially Amazon. [Verge]
— How Amazon is beating antitrust before it happens. [Palladium]
SHARE PRICE = $1,943.05 ··· CHANGE = -30.77 (-1.56 %) ··· MARKET CAP = $959,866.70. B
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