Thread by @CityIndex_Josh

📦 #Amazon releases results after markets close today

☎️ A conference call is scheduled at 1430 PT (1730 ET)

Here is a 🧵 on what to expect from the #earnings...

🐌 Virtually all of Amazon's businesses are suffering a slowdown, from ecommerce to cloud computing

This is set to see it deliver its slowest sales growth on record for any Q4 - an important quarter covering the busy holiday shopping season.

#Ecommerce sales are falling as the explosion in demand seen during the pandemic continues to unwind.

However, they remain considerably higher than back in 2019

Meanwhile, its #cloudcomputing arm #AWS - which makes the bulk of its profits - has seen sales growth slow for over a year as businesses pullback on spending.

Still, it should keep growing at double-digit rates and counter softness elsewhere in the business

Amazon is not as profitable as #BigTech rivals and more labour intensive. That means it has smaller margins to protect from rising costs.

It has cut 18,000 jobs already, but this is just a fraction of its 1.6m-strong workforce.

Getting a better grip on costs will be crucial

However, Q4 should be the trough for Amazon.

👍 Sales and earnings are forecast to start growing again in 2023 and cashflow will also improve

🌬️ Amazon's valuation has deflated from bloated levels seen during the pandemic, but it still trades at a premium as it is geared more toward growth - which is now harder to come by

This could prompt a shift more toward profitability over growth if things remain subdued

🚨 $AMZN still trading below pre-pandemic levels but, compared to 2019, Amazon has seen:

💰 Annual sales grow over 80%

🎫 Subscribers grow by 50m to 100m

☁️ AWS sales and profits double

🔺 #Advertising unit treble in size

👎 But a much slower growth outlook

Quick look at the $AMZN chart before the results

🔔 Up 3.9% before the bell

📈 At 3-month high

👍 Has closed gap created after plunging post-Q3 earnings

🚨 RSI to enter overbought territory

🔍 Brokers are bullish and see 30% upside from here

👍 That's it, you're all set and ready for the results.

Thanks for reading!

You can find out more, including the consensus numbers to look out for today, in our full preview here 👇
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