{"id":67575,"date":"2023-04-28T09:08:26","date_gmt":"2023-04-28T13:08:26","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=67575"},"modified":"2023-04-28T09:08:26","modified_gmt":"2023-04-28T13:08:26","slug":"coffee-with-greta-amazons-storm-cloud","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/04\/28\/coffee-with-greta-amazons-storm-cloud\/","title":{"rendered":"Coffee With Greta: Amazon\u2019s Storm Cloud"},"content":{"rendered":"<p><b>DJIA Futures: <\/b><span style=\"font-weight: 400;\">-107 (-0.3%)<\/span><\/p>\n<p><b>SPX Futures: <\/b><span style=\"font-weight: 400;\">-8 (-0.2%)<\/span><\/p>\n<p><b>NASDAQ Futures: <\/b><span style=\"font-weight: 400;\">-11 (-0.1%)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Good morning friends!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Futures are falling as traders digest the latest batch of earnings and new inflation data.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s get right to it!<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Amazon\u2019s Cloud Outlook Disappoints<\/span><\/h2>\n<p><b>Amazon <\/b><span style=\"font-weight: 400;\">(AMZN) shares are down 2.4% ahead of the open as the company\u2019s uncertain outlook for its cloud services overshadows strong Q1 results.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how the company\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">EPS: $0.31 vs $0.21 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue: $127.4 billion vs $124.6 billion expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amazon Web Services revenue: $21.3 billion vs $21.22 billion expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Advertising revenue: $9.5 billion vs $9.1 billion expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">AWS sales rose about 16% in Q1, which was a slowdown from 20% in the previous quarter.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Amazon\u2019s CFO warned that slowdown is continuing.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He said, \u201ccustomers continue to evaluate ways to optimize their cloud spending in response to these tough economic conditions in the first quarter. We are seeing these optimizations continue into the second quarter with April revenue growth rates about 500 basis points lower than what we saw in Q1.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Amazon\u2019s stock initially rallied in after-hours trading Thursday following the earnings beat but then dropped after the CFO\u2019s comments on slowing cloud revenue.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company expected Q2 revenue between $127 billion and $133 billion vs analysts\u2019 estimates of $129.8 billion.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Snap Plunges On Q1 Miss<\/span><\/h2>\n<p><b>Snap Inc <\/b><span style=\"font-weight: 400;\">(SNAP) shares are tumbling 18.5% in premarket trade after missing Q1 expectations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how the social media giant\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adjusted EPS: $0.01 vs $0.01 per share loss expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue: 989 million vs $1.01 billion expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Daily active users: 383 million vs 384 million expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Average revenue per user: $2.58 vs $2.63 expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Snap did not provide any official Q2 guidance but said its \u201cinternal forecast\u201d for revenue would be $1.04 billion, which would be down 6% year over yera and lower than analysts\u2019 estimates of $1.10 billion.\u00a0<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Intel Beats Despite Largest Quarterly Loss In Company History<\/span><\/h2>\n<p><b>Intel <\/b><span style=\"font-weight: 400;\">(INTC) shares are up 6.8% ahead of the open after beating Q1 expectations on the top and bottom line.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how the chipmaker\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adjusted loss per share: $0.04 vs $0.15 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue: $11.7 billion vs $11.04 billion expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Earnings plummeted 133% year over year while revenue dropped nearly 26%.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The $2.8 billion net loss was the largest in company history.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Intel forecast Q2 revenue of $12 billion and a $0.04 loss per share vs analysts\u2019 expectations for a $0.01 loss per share on $11.75 billion in revenue.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Exxon Mobil Reports Record Q1 Profit<\/span><\/h2>\n<p><b>Exxon Mobil <\/b><span style=\"font-weight: 400;\">(XOM) shares are up 0.3% in premarket trade after reporting a record profit in the first quarter.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how the oil giant\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adjusted EPS: $2.83 vs $2.60 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue: $86.56 billion vs $85.65 billion expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Exxon\u2019s CFO said, \u201cWe delivered a first-quarter record despite the fact that energy prices and refining margins are softening a bit.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The earnings beat was driven by increased oil and gas production which rose by nearly 300,000 barrels per day year over year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That higher production helped offset lower gas prices during the quarter.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Chevron Tops Q1 Expectations<\/span><\/h2>\n<p><b>Chevron <\/b><span style=\"font-weight: 400;\">(CVX) shares are slipping 0.5% ahead of the open despite beating Q1 expectations on the top and bottom line.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s how the company\u2019s results compared to analysts\u2019 estimates:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Adjusted EPS: $3.55 vs $3.40 expected<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Revenue: $50.79 billion vs $48.60 billion expected<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Higher margins in Chevron\u2019s oil refining segment helped income surge more than five times to $1.8 billion.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But profit in the oil and gas production business tumbled 25% as prices dropped.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">PCE Inflation Continues To Slow<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The Fed\u2019s preferred inflation gauge slowed as expected in March.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Bureau of Economic Analysis\u2019 personal consumption expenditures price index rose 0.1% last month and 4.2% year over year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The core PCE price index rose 0.3% monthly and 4.6% annually.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That was in line with expectations on a monthly basis and slightly higher than estimates for a 4.5% gain annually.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">In Case You Missed It<\/span><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">Pending home sales fell unexpectedly in March. The National Association of Realtors reported the number of contracts signed to purchase a home last month fell 5.2%. That missed expectations for a 0.5% increase and was the first drop since November. Pending sales were down 23.2% year over year.\u00a0<\/span><\/li>\n<li aria-level=\"1\"><b>Lyft <\/b><span style=\"font-weight: 400;\">(LYFT) shares rose 1.5% on Thursday after the company announced layoffs. A new <\/span><a href=\"https:\/\/www.sec.gov\/ix?doc=\/Archives\/edgar\/data\/1759509\/000175950923000036\/lyft-20230427.htm\"><span style=\"font-weight: 400;\">SEC filing<\/span><\/a><span style=\"font-weight: 400;\"> showed the rideshare giant plans to cut 1,072 jobs, representing 26% of its workforce. These cuts come in addition to the 13% workforce reduction announced in November 2022.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DJIA Futures: -107 (-0.3%) SPX Futures: -8 (-0.2%) NASDAQ Futures: -11 (-0.1%) Good morning friends! Futures are falling as traders digest the latest batch of earnings and new inflation data. Let\u2019s get right to it! Amazon\u2019s Cloud Outlook Disappoints Amazon (AMZN) shares are down 2.4% ahead of the open as the company\u2019s uncertain outlook for its cloud services overshadows strong Q1 results.\u00a0 Here\u2019s how the company\u2019s results compared to analysts\u2019 estimates:\u00a0 EPS: $0.31 vs $0.21 expected Revenue: $127.4 billion vs $124.6 billion expected Amazon Web Services revenue: $21.3 billion vs $21.22 billion expected Advertising revenue: $9.5 billion vs $9.1 billion expected AWS sales rose about 16% in Q1, which was a slowdown from 20% in the previous quarter.\u00a0 Amazon\u2019s CFO warned that slowdown is continuing.\u00a0 He said, \u201ccustomers continue to evaluate ways to optimize their cloud spending in response to these tough economic conditions in the first quarter. We are seeing these optimizations continue into the second quarter with April revenue growth rates about 500 basis points lower than what we saw in Q1.\u201d\u00a0 Amazon\u2019s stock initially rallied in after-hours trading Thursday following the earnings beat but then dropped after the CFO\u2019s comments on slowing cloud revenue. The company expected Q2 revenue between $127 billion and $133 billion vs analysts\u2019 estimates of $129.8 billion.\u00a0 Snap Plunges On Q1 Miss Snap Inc (SNAP) shares are tumbling 18.5% in premarket trade after missing Q1 expectations.\u00a0 Here\u2019s how the social media giant\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $0.01 vs $0.01 per share loss expected Revenue: 989 million vs $1.01 billion expected Daily active users: 383 million vs 384 million expected Average revenue per user: $2.58 vs $2.63 expected Snap did not provide any official Q2 guidance but said its \u201cinternal forecast\u201d for revenue would be $1.04 billion, which would be down 6% year over yera and lower than analysts\u2019 estimates of $1.10 billion.\u00a0 Intel Beats Despite Largest Quarterly Loss In Company History Intel (INTC) shares are up 6.8% ahead of the open after beating Q1 expectations on the top and bottom line.\u00a0 Here\u2019s how the chipmaker\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted loss per share: $0.04 vs $0.15 expected Revenue: $11.7 billion vs $11.04 billion expected Earnings plummeted 133% year over year while revenue dropped nearly 26%.\u00a0 The $2.8 billion net loss was the largest in company history. Intel forecast Q2 revenue of $12 billion and a $0.04 loss per share vs analysts\u2019 expectations for a $0.01 loss per share on $11.75 billion in revenue. Exxon Mobil Reports Record Q1 Profit Exxon Mobil (XOM) shares are up 0.3% in premarket trade after reporting a record profit in the first quarter.\u00a0 Here\u2019s how the oil giant\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $2.83 vs $2.60 expected Revenue: $86.56 billion vs $85.65 billion expected Exxon\u2019s CFO said, \u201cWe delivered a first-quarter record despite the fact that energy prices and refining margins are softening a bit.\u201d The earnings beat was driven by increased oil and gas production which rose by nearly 300,000 barrels per day year over year.\u00a0 That higher production helped offset lower gas prices during the quarter. Chevron Tops Q1 Expectations Chevron (CVX) shares are slipping 0.5% ahead of the open despite beating Q1 expectations on the top and bottom line.\u00a0 Here\u2019s how the company\u2019s results compared to analysts\u2019 estimates:\u00a0 Adjusted EPS: $3.55 vs $3.40 expected Revenue: $50.79 billion vs $48.60 billion expected Higher margins in Chevron\u2019s oil refining segment helped income surge more than five times to $1.8 billion.\u00a0 But profit in the oil and gas production business tumbled 25% as prices dropped. PCE Inflation Continues To Slow The Fed\u2019s preferred inflation gauge slowed as expected in March.\u00a0 The Bureau of Economic Analysis\u2019 personal consumption expenditures price index rose 0.1% last month and 4.2% year over year.\u00a0 The core PCE price index rose 0.3% monthly and 4.6% annually. That was in line with expectations on a monthly basis and slightly higher than estimates for a 4.5% gain annually. In Case You Missed It Pending home sales fell unexpectedly in March. The National Association of Realtors reported the number of contracts signed to purchase a home last month fell 5.2%. That missed expectations for a 0.5% increase and was the first drop since November. Pending sales were down 23.2% year over year.\u00a0 Lyft (LYFT) shares rose 1.5% on Thursday after the company announced layoffs. A new SEC filing showed the rideshare giant plans to cut 1,072 jobs, representing 26% of its workforce. These cuts come in addition to the 13% workforce reduction announced in November 2022. &nbsp;<\/p>\n","protected":false},"author":41,"featured_media":67577,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-67575","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/67575","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=67575"}],"version-history":[{"count":1,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/67575\/revisions"}],"predecessor-version":[{"id":67579,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/67575\/revisions\/67579"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/67577"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=67575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=67575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=67575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}