Brent Thill, Jefferies software and internet research tech sector lead, says Amazon’s earnings were not terrible, and the stock is cheap, but he says “this is not what anyone was hoping for.” Spending on property and equipment was more than expected. Thill says there’s been a lot of bad news from tech earnings this week. He speaks on “Bloomberg The Close.”
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I want these Amazon earnings to be worse
The investors have been hoping for these companies to massively grow their AI compute segments by bringing new data centers online. Reporting has been available for a long time that these data center projects are being cancelled, downsized, and slow-rolled en masse for lots of reasons, from local opposition to rising costs to poorly-run data center companies hurting for cash.
But in a way this is probably saving Google and Amazon from themselves a little bit, because as soon as those data centers come online, they have to start reporting depreciation on the GPUs that they currently have warehoused. And those GPUs would be serving basically 2 customers who have no path to profitability, and at least in Google's case, compete directly with their core, high-margin business.
The whole thing is so bizarre. Nobody can tell me how this AI buildout would make money. Has anyone even developed a way to mix ads with AI slop in a way that converts customers instead of turning them off? How much are people actually willing to pay for those kinds of ads? Or is the thought really that Anthropic is going to be as valuable as Microsoft, provider of enterprise commercial software and cloud hosting used by basically every company, off of their coding assistant application?
Ceo got to go using a cash and adding debt and risk.
If there was cloud demand, why are prices sinking?
Long story short… buy the dip
wut 😕
AMZN just dropped below its stock value YoY .. negative for the year
I'm buying!
Look at the FUD and "bad news"
Meanwhile revenue up 12%. Operating margins 13.9% at all time highs. AWS grew 40%.
Expectations were set the way they were to purposely find a way to dump on retail. Alot of people will be liquidated. Institutions scoop up cheap shares and back up we go.
The worse things are for the tech bros, the better off the world is.
Time is money
Just wait for when the Anthropic IPO. 🚀💥
This silly guy sounds like he's cheering for a sports team.
Is it just me or is this guy's enunciation really difficult to understand?
AMZN Free Cash Flow is MINUS 42B, what a shocking situation!
ai is overhyped and will eventually become a commodity in most use cases. Spending and burning trillions to best case that open ai and ant can have a duopoly giving them a slim chance of survival. Absent government provided moat, they’re going to zero before people watch them burn another trillion with no path to profitability
Let's fear monger tech/ai, and roll into healthcare/staples, and then treasuries, and then change the narrative and then rotate back into tech/ai after they've dropped. Sound familiar?
Cry all you want but WMT is a 40 pe and AMZN is at 20. something is mispriced between these two.
Amazon knocked it out of the park. Great report.
This is good. Amazon will slash dead weight and lean out a little more. Stock at $267 by January 1.
The shorts have already had a present short going on A.I. , and they like to short after financials, to try to make things look worse than they are. Short sellers have a saying, fear trumps greed. Greed if, you buy a stock, and want it to go up. Fear is, the shorts short stocks down, to try to get people to panic sell. Warren Buffet says, buy on fear, bec thats when you get your best price.
exactly, all hyperscalers have massive backlog they can't convert to revenue because they don't have the compute capacity! Which takes capex investment by hyperscalers and are orders for hardware companies. But hyperscalers are punished on capex and hardware companies are punished too, what?
Both hosts can’t speak. Bloomberg can’t find people that can speak clearly??
This is just the beginning, Americans are the broke, we can hardly feed ourselves. While the president is getting a new ballroom and enjoying the UFC in his back yard.
"Amazon stock is cheap" lol….
Amazon has huge knife hanging over its head with previous ad selling case. If Amazon takes current strategy and it goes into discovery they are in for 100 billion dollar worth of pain as their exposure is for US as well as Europe.
I own Amazon and im buying more tomorrow and i bought Google today
I guess they have to shelf the narrative of "don't sell, the consumer is strong". We will see what new BS the corporative talking heads come up with tomorrow.
Missing eps by a few cents, worrying about 220 billion capex -> market respons minus 550 billion dollar.🙃
Amazon and Netflix are both finding out what happens when you lower quality to save costs for years and years on end. No one wants the junk either of them are peddling and it shows in the numbers.
Ebidta gets mentionned… clown sticker granted
Easy money to make. Time to buy AMZN and put it on a shelf for the next 5 years.
It baffles me. In a world where every joy is being taken away or being out-priced for people, shopping is one of the few pleasures people have left.
Do these tech bros really think people are going to outsource their shopping habits to 'agents'?
No one is going to pay for this stuff.
Did the AI bubble just pop?
Good, needs to happen. AI is rubbish.
Or maybe, just maybe, the demand is not there… just saying 😉
Sooooo, 40% Growth isn't good enough….ok
If the majority of people of average income are going to be unemployed or facing stagnant wages, who will these businesses who are buying these AI “services” be selling to? Robots? A few billionaires? A visiting extraterrestrial army? It’s like the world was driving along in a slow rickety car towards a brick wall, and now the world jumped into a rocket ship, heading for that same brick wall. Am I wrong?