Amazon just announced Q4 2019 results and the stock is up more than two hundred dollars per share or +12% after hours to, what I believe is an all time high, or close to it.
https://ir.aboutamazon.com/static-files/f3589a21-d023-4e4c-9…
Q4 sales are up 21% to $87 Billion for the quarter, more than $15 Billion higher than Q4 of last year. That type of growth with these already huge numbers is just incredible. More than $3 Billion in profit for the quarter. More than $11 Billion in profit for the year. Almost $20 Billion in operating cash flows in the quarter alone!
AWS sales for Q4 were up 34% to nearly $10 Billion for the quarter, and more than $35 Billion for the year. That revenue growth is still holding strong as it was only slightly decelerated from the +35% last quarter in Q3.
They are guiding for between +16% to +22% for the consolidated company next quarter in Q1 2020, so hopefully that implies another more than +30% growth quarter for AWS.
Yes, our cloud SaaS stocks should still have a long runway ahead of them
-mekong
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Azure rev up 64% in constant currency to $11.9B in Q2, continuing the momentum of Q1 63%.
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Mekong,
Shouldn’t the question be which companies does AMZNs continued growth help, and which companies should be worried about all the traction that AMZN is gaining. Who has strong relationships with AWS and who is in direct completion with AWS?
Or is it all just gravy and moonbeams for everyone in the space.
TMB
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TMB,
I think your point is valid, but it misses Mekong’s point. If I may be so bold, I think Mekong is trying to make the point that AWS’s continued solid growth is a data point that confirms companies who rely on cloud services like AWS and Azure (as the 1st followup post points out) are still consuming more and more services and resources provided by these platforms.
It’s anecdotal for sure, but it speaks to the TAM still being in solid growth mode in general. Your point seems about who does AWS’s success hurt. Mekong’s point is about AWS’s success being an anecdotal indicator that SAAS is still growing in general.
From an old school “picks and shovels/miners” model of investing, AWS/Azure/Google Cloud are the picks and shovels suppliers to the SAAS’s miners.
Cheers,
Eric
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It’s anecdotal for sure, but it speaks to the TAM still being in solid growth mode in general. Your point seems about who does AWS’s success hurt. Mekong’s point is about AWS’s success being an anecdotal indicator that SAAS is still growing in general.
As taken from an article about an Andy Jassy December '19 keynote speech:
Jassy made Amazon’s larger ambitions clear at the outset of his address, citing market research that shows 97 percent of the $3.7 trillion IT market is still on premises, in corporate servers and data centers, and not yet in the cloud. Jassy made it clear that this is where Amazon will be looking for its future growth, through new cloud workloads and software migrated from traditional IT environments.
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