Earnings-palooza: Welcome to Club Trillion!
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 31 January 2020
⏱️ 39 minutes
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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. It's the Motley Fool Money |
| 0:20.1 | Radio Show. I'm Chris L. Joining me in studio this week's Senior Analyst Jason Meuser, |
| 0:23.9 | Andy Cross and Ron Gross. Good to see you. He was always gentleman. Hey Chris. |
| 0:27.5 | It is earnings, Paloza. We have so many earning stories. We don't even have a guess this |
| 0:32.3 | week. Sorry Ron. But as always, we do have a few stocks on our radar. We're going to begin |
| 0:37.5 | with Amazon getting back into club Trillion. Amazon's fourth quarter profits blew away Wall |
| 0:44.0 | Street's expectations on Friday. Amazon stock had its best day in over a year pushing the |
| 0:49.9 | company over the trillion dollar market cap, Jason. |
| 0:53.1 | Yeah. I mean, a very impressive holiday quarter or not surprising. We could certainly sit |
| 0:57.7 | here and riff on concerns regarding shipping and costs as bears like to do. We are not going |
| 1:03.7 | to do that though. Chris, because I think they are valid concerns, but take a back seat |
| 1:06.9 | to all the positives that the company continues to bring. And you know, we talk a lot about |
| 1:11.4 | Amazon Web Services and the importance of that side of the business in just so that listeners |
| 1:16.5 | understand why we harp on that every quarter. If you look at the actual quarters results, |
| 1:22.1 | Amazon's North American segment generated $1.9 billion in operating profit on $53.7 billion |
| 1:29.1 | in sales. The AWS segment generated $2.6 billion in operating profit on just $10 billion |
| 1:36.1 | in sales. So you can see how profitable that side of the business is, why it's so important |
| 1:41.3 | and why we continue to focus on it. Those are really great results. Now, not going to |
| 1:44.6 | be nothing, but but roses here because we can certainly flip that over and look at their |
| 1:49.9 | operating margin. There is down more than three percentage points from a year ago. And |
| 1:54.7 | that is investing into that to that infrastructure that makes perfect sense. But they continue |
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