Safa Rashtchy
Safa Rashtchy
amazon course declining despite fact guidance insists operating path
Amazon insists it is still on the path to double-digit operating margin, despite the fact the 2005 guidance distinctly suggests a reversal of this course with declining incremental operating margin. Clearly, something is amiss here.
came higher hopes lower quarter second
The second quarter got our hopes higher for margins, which came in significantly lower than we were expecting,
behavior broadband change companies content crossing dollars expense focus gradual increasing media online profound pushing threshold
Crossing the 50-percent threshold on broadband usage, increasing focus of traditional media companies on Internet, and most importantly, the gradual but profound change in consumers' behavior for content consumption is pushing many more advertisers to allocate more dollars online at the expense of traditional media.
beat companies expect people
People expect these companies to beat the numbers,
amazon competition decline hurting increase needs picture seriously spending
Competition is seriously hurting Amazon and it needs to increase spending just to keep up with the market. The picture is getting worse: more spending, steeper decline in margins.
knew match operations point solid
To me, it was a very solid quarter. I'm not disappointed at all. We knew the point would come when operations would match expectations.
believe correct level likely stock
We believe this level of disparity is not sustainable and the stock is likely to correct this.
believe chance expect good line positively react revenue stock top
We believe there is a good chance for revenue upside, and we expect the stock to react positively to any top line upside.
both fix microsoft midst property time
Microsoft is in the midst of repositioning MSN and they are going to get a property (AOL) that is also in the midst of repositioning? Having to fix both at the same time is going to be a challenge.
guidance higher hopes people seems
For some reason, people had their hopes much higher than this, especially for the guidance. Everything seems to be in line.
amazon disclosure growth level nobody produces
If Amazon produces the numbers, nobody will care. If the growth isn't there, then I think it will become more of an issue. Why isn't there the disclosure level that we would expect?
call conference expect guidance investors positive tone
I expect the tone of the conference call and the guidance they give to be more positive than investors expect.
cautious curious
I would be curious and cautious about what that would entail.
lower mean ownership seen stock stocks wider
Obviously, it will mean a wider ownership of the stock and potentially lower volatility. We've seen that with other stocks that have been in the S&P 500.