We now have Amazon in the spotlight with a dramatic post-market dump. Quick overview, it does seem apparent that this sell-off is warranted as we are looking at how EPS missed expectations by -189.02%. That is indeed a huge miss for a large-cap tech stock and the after-hours selling pressure would most certainly have caught many investors off guard.
In this article, apart from the numbers, I will be exploring 3 key factors that appear to be adding to the uncertainty of Amazon’s recent earnings.
Amazon’s (AMZN) 1Q2022 Financial Highlights
1. Revenue
Revenue – $116.44 billion vs. $116.3 billion expected, according to Refinitiv.
Revenue was satisfactory at best coming in as per analyst expectations. If we broke this down a little into Amazon’s 4 Key verticals and compare them with 1Q21, the comparison are as follows,
At face value, we are looking at revenue numbers that by and large are acceptable by investors. The...