Tom Nash
patreon
Amazon has MUCH bigger problems that AWS slowing down
🕑 Added 2023-02-05 09:48:46 +0000 UTCAmazon just reported its annual numbers and things are actually worse than it seems. it still has double digits revenue growth at around 10% but it is starting to exhibit very concerning signs.
Free cash flow went from to negative 2 billion to negative 26 billion. Debt went up by 12.6% to 128 billion, liabilities are up by 11% to 290 billion, and don't forget the dilution of 2% on the year (plus a major increase in future stock based comp to be converted down the line).
Costs are up big as well, with Selling G&A Expenses up 35% to 51 billion, Operating Expenses are up 5% to 52 billion and EBITDA is DOWN 22% to 50 billion. With 514 billion of annual sales the numbers should look much better guys.
AWS is a great business but the rest of the business lines are hot trash at this point. But even AWS is slowing down its growth, and as recession risks increase spend on B2B infrastructure like AWS will shrink further.
I am a big fan of Amazon. mainly the AWS business, but in this macro environment, at this price, FOR ME personally, it seems like there are better places to allocate capital.
Just my 2 cents.
