first up today the big earnings reports
from amazon
and alphabet so let's get straight to
our panel as we wait for those numbers
to come in adam leschinski from business
insider is here
adam's a fox contributor and in the
interest of full disclosure we always
say this on earnings day
adam is a google spouse we'll be talking
of course about google called english
here as well from
barons financial markets reporter there
and fox contributor gary countbound from
countbound capital management also uh
joining us so
we're going to get two of the biggest
names adam will start with you in the
technology world
um here in the next few minutes started
on amazon as we erase
with these results of the possibility of
a 100 billion dollar
uh quarter what do you think's the most
important thing to be looking for
well we're we're back to the real unreal
economy
con all right so these are not meme
stocks by any stretch of the imagination
they're also extremely valuable stocks
because of how well these companies are
doing
the very the most important thing of all
to look at with amazon is what it's been
for many of the past quarters which is
aws amazon web services they're the big
guerrilla in this
field uh the the world is moving
digital bigger companies are moving
digital
this unit of amazon has been growing um
at a rapid clip and if we see it grow in
another rapid clip the stock will do
well
all right here comes the amazon numbers
uh carlton and and gary
and they're just crossing right now in
the fourth quarter uh the net profit
comes in at 7.2 billion dollars the
sales figure
is 125 billion 125.6 billion dollars in
sales in a single quarter
uh for amazon that is that is better
than expected um
i'll go through some of the segments
which are crossing here in a moment as
well but there you go carlton 125
billion dollars in sales in a quarter
well it was their holiday quarter so i
guess we could take that
stock by the way selling off a little
bit and we'll get into some details
down by three percent after being up in
the regular session um
carlton go ahead on on amazon i mean
this is just a huge number after apple
last week with about 111 billion
amazon now i believe said 124 massive
well above
what analysts were projecting points to
a very strong holiday quarter
when you look at the u.s about 40
percent of all e-commerce sales are
happening on amazon's platform
you look at amazon's prime day typically
held in the summer
was pushed into october for some kovid
related reasons
huge push for the company this year uh
like adam was saying i definitely do
want to know a little bit more about
that cloud business because i believe
cloud is going to be the story of this
quarter
especially in light of microsoft's
results last week but uh yeah
it looks like right now i understand
maybe it is selling off a bit uh
after hours but a huge huge number for
amazon today
really is 125.6 billion in revenue is a
gigantic quarter
the earnings per share came in gary at
14.09
we're still looking to make sure that's
comparable to estimates if so it was
almost double the estimate in terms of
an eps
estimate from analysts there's a couple
of things here um
that were interesting and one of them we
were looking oh here
well here's the headline of the day
that's that is interesting um
amazon's founder and ceo jeff bezos gary
calpe ready for this
will transition to the role of being the
executive
chairman in the third quarter andy jesse
will become the ceo of amazon i was
about to say
something else entirely there and look
at some of the segments when that
headline just crossed here
at um at four minutes after four the dow
jones news wires um
oh there you go so now we have a
headline gary take it away
uh which means i don't know i mean look
at titles of titles not like jeff bezos
is going anywhere
look these two companies i have one word
juggernaut
uh these numbers are juggernaus that's
all
i just made up a new word they beat wall
street estimates by a mile i don't know
why amazon was down initially but i see
it's up a little bit now
uh the google numbers were gargantuan
also
uh we are in rarified air with these
companies
their valuations their market cap you
name it and they're just ability to
dominate when they get into other things
now i mean google's messed up a couple
of things
but their prime stuff they just kick and
amazon
it just all i can tell you in my
neighborhood there's about 40 vans each
day
with the word amazon on it so they're
doing something right you're
that's a great tease you've been in this
business a long time gary we're going to
talk about google in a minute
um uh but did you say those numbers look
like they're they're huge
uh adam you want to take this jeff bezos
headline that he's uh transitioning out
of the ceo
chair at uh at amazon i do because
you know it seems like a lifetime ago a
minute ago i said the story is aws i had
no idea that this andy jassy promotion
news was coming but this is the point
andy jassy birthed this aws
business and basically as an assistant
an assistant to jeff bezos he's run this
business he built the business
and now he's going to be ceo of amazon
so you don't need to take
my word for the importance of aws the
cloud business to amazon
this is jeff bezos's opinion on the
importance of the cloud business
to amazon he's naming his deputy to be
ceo of the company
that's really interesting so the
successor becomes and boy
and carlton you were mentioning this aws
is such an important segment of the
business
already uh amazon web services and
now we know that that's the direction
that the company overall is going in
i didn't know as much about andy jassy
as someone like adam wood but that's
um that's really interesting one more
world caught on on amazon and what these
numbers have and then we'll move on and
get the google figures on
yeah i really do think uh it's
definitely going to be that jeff bezos
uh
story uh what he what he's going to do
next obviously he's still going to be
with the company so definitely
interested to hear more about that
strategy
and more about what amazon sees for the
cloud we know it's going to be a huge
business it's a huge business in silicon
valley and it's you know the future uh
just curious to hear more about what
amazon is thinking about it
you want to i'll get to you a second
gary but you want to take that uh
adam also just having followed this
company for so long and that what is
where is jeff bezos going or what is
next for him um there's a
he has a lot of other business ventures
of course he he does i mean look
we've all known about this for for 90
seconds i'm sure there's going to be
some really interesting
reporting on what the back story is one
of the back stories is that jassy
has been so successful a couple years
ago he was named
ceo of amazon web services it really
didn't change what his job was
it gave him a bigger title and probably
helped keep him at amazon as opposed to
being
ceo of another company now he's going to
be ceo of aws
some people speculate that that there
could be any trust action
at some point that would force amazon to
break off aws
into its own company so maybe people
will say now that jassy's running the
whole thing
that amazon is putting its foot down and
saying we're not going to do that just
the way facebook has said we have no
intention
of breaking up um or maybe it's just the
opposite maybe it make
it it starts setting the table for jeff
bezos to run that company down the road
i just i would i wouldn't rule out that
there's something more to this story
bezos has been through an interesting
personal and professional time over the
past
few years so there could be more to this
and
can i just mention that all the time all
the talk from dc
and breakups and and do
all kinds of things over the head the
breakups would make the stocks go
much much higher because the valuations
get unlocked
i think youtube was bought by google for
1.5 billion some people are saying now
it's worth 300 to 400 billion
so uh washington dc i dare you a lot of
people make a lot of money on higher
stock prices
gary you want to stay with alphabet for
a moment you mentioned you know a few
minutes ago that the good that the
earnings were strong and
and you're right um google with 22.30 a
share
in profit 15.90 a share was the estimate
and the the revenue there
at alphabet at 56.9 billion dollars
for the quarter and that too is well
above expectation
so you know we'll we'll continue we can
talk about both now
um and this jeff bezos news i think kind
of takes things over a little bit and
it's gonna be on a lot of people's minds
but gary quick word on
on this company and this stock which by
the way is skyrocketing higher almost
eight percent after hours
the amazing part about this is you know
wall street uh
is kinda efficient with uh some of these
bigger companies
on guidance and not necessarily being
close every quarter
uh but in in a certain range these
companies are just
blowing the doors off and for the size
of these companies to grow their
businesses
at the rate they are growing just
amazing by the way microsoft did the
same thing also especially with the
cloud side so
without a doubt i go back to my word
juggernaut uh
there's a few names out there and they
just continue to deliver
and i used to think there were caps on
where these companies can go as far as
size i don't think there's uh caps
anymore they just keep uh
getting the job done and it's just
amazing to watch
you know it's also amazing carlton how
quickly we can go from spending just
about 24 7 talking about
you know where game stops stock is going
to trade or
uh you know what silver's going to do or
what everybody's talking about on reddit
and now
is is today kind of a back to back to
normal day or
um what do you make of all that or is
that story far from over as
as well what do you think yeah i don't
know that the game stop story is far
from over
as far as uh doing the kind of rehash of
what happened what really went down with
robin hood and things like that but when
you look at how the market has been
reacting especially in today's trading
i'm talking the broader market
i think we are going a little bit more
back to normal some of the fund managers
i was speaking with last week were
talking about taking some risk off the
table
looks like today maybe they re-entered
the market and again you know earnings
matter again
uh it was something we joked about last
week where you had the blowout quarter
from apple that nobody was talking about
but now we have these
huge huge numbers from amazon and
alphabet and as well as the news that we
just got from amazon
and i think fundamentals may actually
start to matter again
looking at alphabet i'm definitely going
to be interested in seeing the breakout
of the cloud business
this is the first quarter that they're
really doing a breakout of that segment
so that's going to be really interesting
to see how they talk about that on the
call of the day
yeah speaking of calls i should mention
susan lee um is actually
hopping on a call with the cfo that's
why she's not she was going to join us
but
she's not joining us right now she had
to hop on that call with a cfo at
alphabet and i think we will get more
details on exactly what you're talking
about the idea there's now
three operating segments at that company
and it's different from how they
reported in the past
um before we move on adam one more award
on amazon we focused i think because we
all you know took a step back when we
saw the headline that jeff bezos is
is going to be uh transitioning out of
the ceo role guy by the name of andy
uh jassy who had been running aws comes
in to be the new ceo of amazon
you know what's interesting about the
numbers today is that and maybe this is
why the stock is not off to the races
after
hours almost everything was great versus
expectations except the aws
uh revenue i mean they had a huge number
12.74 billion in revenue
at that particular segment but that was
actually a little bit light
compared to estimates so in the actual
quarter the looking back at the last
quarter
it wasn't the greatest quarter in terms
of um estimates for for amazon web
services adam
sounds like what you're saying is you
know perhaps
that it didn't shoot the moon compared
with expectations
we see this happening to the to the far
away market leader
we may find out from google that
google's doing well
in cloud has been putting a ton of
effort into it we know microsoft
uh did um but so i don't know my hunch
is that it to the extent that this is a
problem it's a problem versus what
investors expected as opposed to a
a real problem with amazon web services
yeah i think that's fair um boy and that
was interesting uh jeff bezos
transitioning to
executive chairman of amazon out of the
ceo role again andy jassy to become the
ceo in the third quarter thank you
all you guys we appreciate it adam and
carlton and gary good stuff we'll
revisit some of these companies
especially with their after hours trades
as we as we continue here on a busy
after the bell