Please ensure Javascript is enabled for purposes of website accessibility

What to Make of Amazon.com, Inc.'s Earnings Call

By Motley Fool Staff – Feb 2, 2016 at 12:18PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Street tends to have a short-term focus on top- and bottom-line numbers, but does this really make sense for a business like the big online retailer?

Last week's earnings call from Amazon.com (AMZN -3.01%) has led to a lot of conflicting reactions, analyses, and opinions.

In this video segment, Motley Fool analysts Dylan Lewis and Sean O'Reilly talk about how they're feeling about the company, and how investors should look at companies that -- like Amazon.com -- are volatile on the bottom line.

A transcript follows the video.

 

This podcast was recorded on Jan. 29, 2016.

Dylan Lewis: Wall Street was disappointed, some of the headline figures that a lot of people tend to fixate on these quick briefs were disappointing. Sounds like things were pretty good. What is the outlook like for the company over the next year or two?

Sean O'Reilly: They were pretty conservative with their outlook. They guided for revenues in the first quarter of about $29 billion to $31 billion, I mean, obviously, the fourth quarter is always way bigger because of Christmas and all that. But they were pretty conservative. None of the analysis that I read seemed to imply that Wall Street was disappointed with the forward guidance; they were just mad that they missed on gap earnings, and that was it. But the trends that I'm seeing, and the absolute dollar numbers are awesome.

Lewis: So maybe the lesson here is, as a company is newly profitable, there is going to be some volatility in what that profitability looks like, particularly if it's a high-growth company that takes a lot of moonshot projects on.

O'Reilly: Exactly, yeah. So, I like what's going on. Anyway.

Dylan Lewis has no position in any stocks mentioned. Sean O'Reilly has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$113.78 (-3.01%) $-3.53

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.