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Motley Fool Hidden Gems Investing

Amazon's Wild Growth

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 29 April 2016

⏱️ 39 minutes

🧾️ Download transcript

Summary

Amazon reports its most profitable quarter in history. Facebook connects. Apple slips. And Comcast makes a big buy. Plus, Thomson Reuters transportation editor Joe White kicks the tires on driverless cars.     Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Everybody needs money. That's why they call it money.

0:07.0

From full global headquarters, this is Motley Fool Money.

0:19.0

This is the Motley Fool Money Radio Show. I'm Chris Ellin joining me in studio this week for Million Dollar Portfolio, Matt Argusinger, from Motley Fool Pro and Options Jeff Fisher and from Motley Fool Deep Value, Ron Gross.

0:29.0

Good to see you as always, gentlemen.

0:31.0

How you doing?

0:32.0

Earnings, Belusa rolls on. We will get to the latest results from Wall Street. We will dig into the automotive industry with Joe White from Thompson Reuters.

0:39.0

And as always, we'll give you an inside look at the stocks on our radar.

0:42.0

But we begin with the retailer that's only getting bigger. Amazon's first quarter revenue up 28% as the company posted its most profitable quarter ever, Matti.

0:54.0

This was a really big quarter.

0:56.0

I don't even know where to begin. But let's start with that revenue number of 28%. I look back. That is the fastest year over year growth for Amazon since 2012.

1:06.0

So over four years and a much, much larger company. They're getting their fastest growth rate in your year in a long time.

1:12.0

And if you get into the details, it's even more impressive. Of course, Amazon Web Services is getting all the headlines deservedly.

1:18.0

So, you know, revenue there was up 64% operating profits of over 200% to 600 million.

1:24.0

But there were two things that really stood out to me that aren't getting a lot of press. And that is, you know, if you look at the international side, segment for Amazon sales there were up 24%.

1:33.0

And just recent quarters, Amazon's really reported no growth in that segment. And here they are up 24%.

1:39.0

And then we talk a lot about, you know, Amazon video, all the digital things the company is doing, Amazon Web Services.

1:46.0

But if you just look at the, if we get to the meat and potatoes of this business and you look at selling stuff, selling stuff like electric, the electronics in general merchandise is how they break it out.

1:55.0

Normal everyday stuff up 32% in North America, 31% internationally. And that right there to me is clear evidence that Amazon continues to steal massive share from domestic retail.

2:06.0

They turned off pretty mortuary.

2:08.0

The spending spigot here a bit to deduce those earnings. Are they just spending as much as they always?

2:13.0

They spending didn't drop off that much at all. So I think they're just getting, I mean, Amazon Web Services is higher margin.

2:18.0

More cash is dropping to the bottom right there, but it's so impressive.

...

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