Amazon Remains Appealing Despite Q4 Shortcomings
Key Takeaways:
* Bulls support Amazon (AMZN) due to Amazon Web Services (AWS) meeting expectations and AI investments in retail.
* Stock has potential to rise as investors anticipate improved retail business margins.
* Near-term catalysts include Alexa event and Kuiper-1 satellite launch.
Underlying Bearish Factors:
* Q1 revenue guidance below expectations.
* Significant capital expenditure projection.
* AWS sales growth deceleration.
Positive Q4 Performance:
* AWS sales grew 19% year-over-year for the third consecutive quarter.
* Cloud services business margins increased to 46.9%.
* Record quarterly operating income of $21.2 billion.
Bullish Outlook:
* Expectation of Alexa Rufus paid subscription product launch.
* Upcoming Kuiper-1 satellite rocket launch.
* Potential for margin improvements in the retail business.