After months of hyperbole and anticipation, the countdown is on for D-Day and the quarterly earnings reports due this week for a basket of companies including the “I can do no wrong” Amazon.
Amazon is the flavor of the month as the Jeff Bezos steamroller just keeps gathering pace. With a market capitalization of $475 Billion, it seems Amazon can do no wrong. In a scene that was reminiscent of bidding for the Olympic games in the good old days when cities actually wanted to host the games, cities in the US and Canada have been clamoring to be the destination of choice for the e-commerce giant’s second headquarters.
New York City lit up the Empire State Building and the World Trade Center in Amazon orange. Kansas City Mayor Sly James went a step further. He ordered 1,000 items from Amazon and took the time to post reviews about them. Other cities like Washington DC and Danbury, Connecticut created advertising campaigns aimed at promoting themselves as the best choice for the Amazon move. Birmingham Alabama installed a huge Dash button that tweets Amazon in their effort to get the nod for the move. These might all seem a bit extreme but take into account the 50,000 jobs that the new Amazon headquarters will create, and the antics start to look justifiable.
Just rumors from Amazon can shake the markets, and with the stock currently trading at close to 140 times earnings, the bar is very high for their reports this week. The valuation makes Amazon more expensive than other sector favs like FaceBook and even Apple.
It’s not like everything was smooth sailing. In the run-up to the Presidential elections in the US, then-candidate Donald Trump poured his criticism on the company promising to create the mother of all problems for the company. Fast forward a few months and apart from the odd Tweet now and again, there’s little to be seen of the problem causing from now POTUS Trump with his Federal Trade Commission approving the close to $14 Billion takeover of Whole Foods by Amazon.
Expectations are high for the company’s quarterly earnings due this Thursday after the closing bell. Analysts are confident that the company will deliver, despite the costs of the Whole Foods takeover.
Not long to go now, so if you’re into Stocks, mark the Amazon Earnings Report down for this Thursday.
This article is for educational and informative purposes only and should not be considered as investment or trading advice.