5 Latest Earnings That Surprised Wall Street

1. Amazon.com, Inc. (NASDAQ:AMZN)

Number of Hedge Fund Holders: 271

Amazon.com, Inc. (NASDAQ:AMZN) reported its Q2 results on July 28. The company posted a loss per share of $0.20, falling short of market consensus by $0.12. The revenue climbed 7.2% year over year to $121.20 billion, beating Street estimates by $2.04 billion. For its Q3 2022 guidance, Amazon.com, Inc. (NASDAQ:AMZN) expects net sales to fall between $125.0 billion to $130.0 billion, compared to a $126.58 billion consensus. This guidance factors in a negative impact of roughly 390 basis points due to foreign exchange headwinds.

On July 29, UBS analyst Lloyd Walmsley raised the price target on Amazon.com, Inc. (NASDAQ:AMZN) to $180 from $167 and maintained a Buy rating on the shares. The company posted strong Q2 results with “robust” backlog growth, while its Q3 revenue growth guidance of 13% to 17% also exceeded expectations, the analyst told investors. The analyst added that Amazon.com, Inc. (NASDAQ:AMZN)’s fulfillment expense and COGS were both below his estimates, though these were somewhat negated by increased marketing expenditure.

According to Insider Monkey’s data, 271 hedge funds were bullish on Amazon.com, Inc. (NASDAQ:AMZN) at the end of March 2022, compared to 279 funds in the last quarter. Jaime Sterne’s Skye Global Management is a significant stakeholder in the company, with 740,500 shares worth $2.4 billion. 

Here is what Oakmark Select Fund has to say about Amazon.com, Inc. (NASDAQ:AMZN) in its Q2 2022 investor letter:

“Amazon (NASDAQ:AMZN) is the leading e-commerce and cloud-computing provider in the world. Two-thirds of U.S. households are Amazon Prime subscribers, and over half of all online product searches now start on Amazon. We believe the company’s strong customer loyalty and massive infrastructure are significant barriers to entry in a growing e-commerce market. Separately, Amazon Web Services (“AWS”) controls nearly half of the market in cloud computing. We believe AWS has become utility-like in nature and scale and we expect healthy growth moving forward as IT workloads continue moving to the cloud. More recently, concerns about rising investment spending have weighed on the stock-as they have in times past-providing us another opportunity to purchase shares at a very attractive price. At our purchase price and valuing AWS like its peers, an investor isn’t paying much of anything for the immensely valuable e-commerce franchise.”

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