Amazon’s cloud business grows, e-commerce recovers profits
Uber responds quickly to changes and builds a stable demand structure
Goldman Sachs said that the top winners of this earnings season are Amazon (AMZN) and Uber (UBER).
According to CNBC (local time) on the 22nd (local time), Goldman Sachs said that in this earnings season, companies whose main revenue stream is online suffered difficulties, but Amazon and Uber, which directly contact consumers, were not hit hard.
For Amazon, the company’s analyst Eric Sheridan highlighted in its recent earnings report that its cloud computing (AWS) business and digital maintained momentum and showed growth and margin recovery in e-commerce.
In the case of Uber, it also said that it responded well to social changes, and its profits increased for the second quarter in a row despite a stable trend of final demand and overall industry competition.
The analyst also mentioned two stories from this earnings season.
First, companies whose main revenue source is online are slowing down due to headwinds from macroeconomic environment, competition, and privacy protection.
On the other hand, companies such as Amazon and Uber, which have direct consumer exposure, such as large e-commerce, travel, vehicle service and delivery, are not out of growth trajectory. These companies mentioned that there was no significant change in demand, but they are responding well to changing trends such as home demand before and following the pandemic and recovery of daily life.
Goldman Sachs also noted that Metaplatform (META) and Alphabet (GOOGL) are also at the top of the post-evaluation list.
Meta is recently switching its platform to short video services and shopping. In addition to the personal information issue, the company is experiencing short-term sales slowdown and margin volatility. Nevertheless, he noted that the company is continuing its long-term investment in Metaverse, which will create an attractive combination of revenue growth and earnings per share.
In the case of Alphabet, the analyst said, the strength of search is offsetting the headwinds of video services. He said that Alphabet is expected to see compound shareholder returns, including growth and loss improvement in the cloud sector, the potential of Arterbetts (venture capital and private equity business), and treasury stock buybacks.
By Kim Jung-ah, staff reporter [email protected]
