Amazon's Investments, Tesla's Surprising Profit
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 25 October 2019
⏱️ 41 minutes
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| 0:00.0 | This week's Monty Full Money is brought to you by Molecule. Molecule is reimagining the future of clean air starting with the air purifier. |
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| 0:34.0 | Everybody needs money. That's why they call it money. |
| 0:42.0 | From fool global headquarters, this is Motley Full Money. |
| 0:52.0 | It's the Motley Full Money Radio Show. I'm Chris Hill, joining me in studio this week's senior analyst Jason Moser, Emily Flippin and Ron Gross. Good to see you as always. |
| 0:59.0 | We've got the latest earnings from Wall Street. We will dip into the full mailbag. |
| 1:04.0 | And as always, we're giving an inside look at the stocks on our radar. |
| 1:07.0 | Earning season, in full swing, we're going to begin with Amazon. The e-commerce giant sold $70 billion worth of stuff, Jason, in the third quarter. |
| 1:16.0 | But profits were lower than expected due to all of the investments that Amazon has been making. Interesting to see. |
| 1:22.0 | You look at the stock after hours. It was down nearly 10% when the trading day opened. It basically stabilized. |
| 1:29.0 | Yeah. And having gone through the report and the call, I mean, I appreciate that the market has come to its senses. |
| 1:34.0 | I mean, maybe it's not an ugly quarter if you mean to do it, right? I mean, it's all a matter of percent. |
| 1:40.0 | I got it right down. I'm going to do that. |
| 1:42.0 | Listen, Amazon, you said it. They grew their revenue. The revenue grew 24% of the quarter. 70 billion dollars in sales. |
| 1:48.0 | I mean, this is a behemoth. We know what they're capable of. Given the market opportunity, I mean, I don't understand how you can justify not owning this stock. |
| 1:57.0 | And so I do understand the knee jerk reaction from the market when you look at the profitability picture. |
| 2:05.0 | In to compare the margins from 2018 to 2019. And I keep track of these operating margins operating margins in the North American segment fell from 5.9% to 3%. |
| 2:16.0 | Operating margins internationally improved slightly, but Amazon web services were down from 31.1% to 25.1%. So while they're bringing more on the revenue side, they're spending more on the investment side. |
| 2:29.0 | That makes a lot of sense. I mean, they've made this move to one day shipping. They said it's resulting in more orders and more spending. We like to see that. |
| 2:37.0 | We're seeing another lever coming to light here in the advertising. And in line with that advertising, I was really impressed to see that the fire TV franchise here, all of these devices that support this fire TV platform, they've got more than 37 million active users worldwide. |
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