WEBVTT - Instant Reaction: Amazon Reports Strong Cloud Unit Sales on Rising AI Demand

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Shares an Amazon kind of bouncing around right now, but

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<v Speaker 2>rallying in the after hours four point eight percent, gaining

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<v Speaker 2>as much as six percent earlier. This after our first

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<v Speaker 2>quarter earnings per share beat estimates. We did see that

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<v Speaker 2>results came in way ahead of estimates, including the key

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<v Speaker 2>AWS segment, extending the company's recent streak of beating estimates.

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<v Speaker 2>Second quarter sales and operating income guidance did though come

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<v Speaker 2>in a touch soft.

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<v Speaker 1>All right, So let's get to it with us as

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<v Speaker 1>Bloomberg Intelligence senior Alys Putnamgoyle and Anna Ragrana on Amazon

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<v Speaker 1>and their outlook again, the stock up about four point

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<v Speaker 1>six percent. Gosh, not sure where to start here because

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<v Speaker 1>there's so many moving parts, honourg let me start with

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<v Speaker 1>you in terms of we always think about AWS, but

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<v Speaker 1>tell us about from your perspective, what you what jumps

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<v Speaker 1>out for you for Amazon?

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<v Speaker 3>Yeah, I would say AWS, Madgins. I mean, I just

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<v Speaker 3>can't believe how big this number is. Thirty seven point

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<v Speaker 3>six percent operating margins compared to last years twenty four percent,

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<v Speaker 3>So that's almost you know, fourteen percent increes and that

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<v Speaker 3>that is this phenomenal and basically shows the scalability of

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<v Speaker 3>this business model. And you know, frankly speaking, we weren't

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<v Speaker 3>expecting these kinds of margins for several years out. So

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<v Speaker 3>I think this is this should be really good signed

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<v Speaker 3>for investors that this is really a good business model,

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<v Speaker 3>an rock.

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<v Speaker 2>How do they do this? Given that Microsoft is catching up,

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<v Speaker 2>given that Google's alphabet's Google is catching up? How did

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<v Speaker 2>Amazon pull this off? How did they pull off these margins?

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<v Speaker 3>I think they did a lot of cost rationalization over

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<v Speaker 3>the last few years. They remember all the you know,

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<v Speaker 3>layoffs and things that we heard about, So I think

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<v Speaker 3>that has to do with it. Now, I mean, to

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<v Speaker 3>be very honest, I think this is going to be

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<v Speaker 3>a time that these margins will over time go a

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<v Speaker 3>little bit down because of new investments in generative AI

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<v Speaker 3>and you know, things that they have to do to

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<v Speaker 3>expand the capacity of their data centers. So at the

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<v Speaker 3>same time, I mean, you've never seen thirty seven point

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<v Speaker 3>six percent margins for AWS before, all.

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<v Speaker 1>Right, so forgive me punam, come on in, because yeah,

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<v Speaker 1>I mean the retail side of the business is really

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<v Speaker 1>super important too, So talk to us about what we

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<v Speaker 1>saw on that side.

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<v Speaker 4>Sure, the retail numbers were actually just in line, so

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<v Speaker 4>they met expectations and they looked at that and advertising.

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<v Speaker 4>I think the story really is on AWS. That's where

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<v Speaker 4>the beat came from. But I would say, you know,

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<v Speaker 4>the guidance is light of expectations, and that may have

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<v Speaker 4>something to do with online because if you recall the

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<v Speaker 4>first quarter, it did have an earlier easter. So some

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<v Speaker 4>of the numbers that you see on the online side

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<v Speaker 4>being strong and inline is thanks to that earlier easter

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<v Speaker 4>and the spring sale that they had, which wasn't there

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<v Speaker 4>last year. So some of the weakness that we're seeing

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<v Speaker 4>in the guidance maybe due to the online business that

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<v Speaker 4>we'll find out when they start talking on the call.

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<v Speaker 2>Put what about advertising here? This is something that not

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<v Speaker 2>just on the Prime video which is relatively new, but

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<v Speaker 2>the business over the last few years has grown massively,

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<v Speaker 2>and when it comes to the search function, talk to

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<v Speaker 2>us about what you saw with advertising this quarter.

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<v Speaker 4>Advertising was strong, once again relatively inline with expectations to

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<v Speaker 4>a little better. So we think that business continues to

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<v Speaker 4>grow at a twenty plus percent clip, and we think

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<v Speaker 4>that will continue, especially with the layering on of the

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<v Speaker 4>Prime video advertising business. What I'd say there is. You know,

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<v Speaker 4>when you think about the two big businesses that it

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<v Speaker 4>has outside of retail, they're very, very high margin businesses,

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<v Speaker 4>both advertising and AWS. So when we see the cash

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<v Speaker 4>flow generation that we saw in the quarter, it's really

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<v Speaker 4>thanks to these two businesses growing at the rate that

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<v Speaker 4>they're growing.

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<v Speaker 1>Anna Rock, I want to bring you back in because

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<v Speaker 1>you know, one of the previews that we had on

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<v Speaker 1>the Bloomberg today is, you know, Amazon earnings to bring

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<v Speaker 1>more scrutiny for AI tethered stocks and just saying how

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<v Speaker 1>kind of the bar was high coming off of Alphabet

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<v Speaker 1>and Microsoft last week right where they showed, hey, listen,

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<v Speaker 1>all this money that we're spending on AI, it's paying

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<v Speaker 1>off for us. We're trying to kind of find where

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<v Speaker 1>the AI story and what it's doing for Amazon. What

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<v Speaker 1>can you tell us there?

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<v Speaker 3>Yeah, and if you look at it, they launched a

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<v Speaker 3>brand new product today called Amazon Q. You're going to

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<v Speaker 3>see a lot of new enterprise products being launched by

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<v Speaker 3>AWS because you know, one of what there are one

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<v Speaker 3>ways to look at it is on the consumer chat

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<v Speaker 3>GPT kind of stuff. They're not the player over there.

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<v Speaker 3>They are more selling AI to corporations or large companies. Now,

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<v Speaker 3>that's going to take time to build up, which is

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<v Speaker 3>one of the reasons I'm saying that this high margin

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<v Speaker 3>of thirty seven percent thirty seven point six percent on

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<v Speaker 3>Amazon Web Services is not going to last forever. It's

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<v Speaker 3>going to go down slowly over the next few years. Now,

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<v Speaker 3>that's not a bad thing because in a scalable model

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<v Speaker 3>like this to you know, be able to give some

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<v Speaker 3>of that back to gain revenue. I think it's it's

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<v Speaker 3>a long term really positive sign for AWS.

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<v Speaker 2>Honor rog one hundred billion dollar annual revenue run rate

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<v Speaker 2>for AWS. That number a surprise.

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<v Speaker 3>Oh no, I mean we have, we have, we wrote

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<v Speaker 3>a big report and we don't see a reason why

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<v Speaker 3>this won't be two hundred billion one day. The question

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<v Speaker 3>only is how long it's going to take. That's the

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<v Speaker 3>big question, is whether it's going to take five years

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<v Speaker 3>to get there or six years, seven years. But the

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<v Speaker 3>end markets are so large, you know, we remain confident

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<v Speaker 3>that it's going to hit two hundred billion over the

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<v Speaker 3>next you know, somewhere between six to seven years.

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<v Speaker 1>Poonam, what are they going to do? Like, what are

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<v Speaker 1>the numbers we were just talking about with our TV colleagues.

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<v Speaker 1>Operating cash flow increased eighty two percent to ninety nine

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<v Speaker 1>point one billion for the trailing twelve months compared with

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<v Speaker 1>fifty four point three billion for the trailing twelve months

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<v Speaker 1>that ended in March thirty first, twenty twenty three. They

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<v Speaker 1>got a lot of money coming in. Like you know,

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<v Speaker 1>there was some speculation, do they do a dividend, do

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<v Speaker 1>they do buy back? Like what do you want to

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<v Speaker 1>be seeing that they do with their cash. Certainly on

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<v Speaker 1>the retail side of things.

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<v Speaker 4>I think while ad mesters would like a dividend and

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<v Speaker 4>buy back, I think they're going to invest back in

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<v Speaker 4>the business. So Tiana Rox points, you know, I think

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<v Speaker 4>we are going to see capex right on the AWS side, especially,

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<v Speaker 4>and they've said that they've said that in the past

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<v Speaker 4>that they do plan to take Capex up there. So

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<v Speaker 4>we do see them spending more there. But that cash

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<v Speaker 4>full generation is only going to go higher. You know,

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<v Speaker 4>these margins that they're generating on the advertising business and

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<v Speaker 4>the AWS business, and as those businesses scale even further,

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<v Speaker 4>are going straight to the bottom line and offsetting any

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<v Speaker 4>losses that they have. If that in the retail business,

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<v Speaker 4>you know, you said.

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<v Speaker 1>To Punham that overall guidance for the company, and that

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<v Speaker 1>seems to be the thing that was certainly we highlighted

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<v Speaker 1>on the Bloomberg In terms of their revenue guide and

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<v Speaker 1>second quarter net sales, they see one hundred and forty

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<v Speaker 1>four billion tw one hundred and forty nine billion. The

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<v Speaker 1>street estimate is above that range at one hundred and

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<v Speaker 1>fifty point twenty one. You said, you know, might be

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<v Speaker 1>because of the online business. What's the question you want

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<v Speaker 1>to be hearing? Are that analysts are asking specifically on

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<v Speaker 1>that call.

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<v Speaker 4>I think the first question is how much did in

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<v Speaker 4>earlier easter help them in the spring sale? How much

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<v Speaker 4>did that contribute to that seven percent increase that they

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<v Speaker 4>saw in online sales first party, because if that was

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<v Speaker 4>a few percentage points, and that kind of answers the

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<v Speaker 4>question going into the second quarter. And then the other

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<v Speaker 4>question I'd ask on the retail side is you know,

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<v Speaker 4>how are they doing in terms of just gaining share

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<v Speaker 4>online against these rising threats from TIMU and She and

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<v Speaker 4>I don't know if they'll ever answer that, but clearly

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<v Speaker 4>those things are growing very rapidly, and is there something

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<v Speaker 4>else that they're doing to offset those competitive threats?

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<v Speaker 2>Honor rog I'm just taking some time to look through

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<v Speaker 2>the cloud results here. And one thing that was notable

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<v Speaker 2>going into this report is that there was some discussion

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<v Speaker 2>about sales growth at AWS slowing to a record low

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<v Speaker 2>last year, businesses cutting back on tech spending. They wanted

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<v Speaker 2>to bring those computing bills that balloon during the pandemic

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<v Speaker 2>under control. Now you have Jasse out in a statement

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<v Speaker 2>saying essentially that the combination of companies renewing their infrastructure

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<v Speaker 2>modernization efforts and the appeal of aws's AI capabilities is

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<v Speaker 2>reaccelerating aws's growth rate. Is that him saying companies are

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<v Speaker 2>done cutting back on their cloud spend. Is that him

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<v Speaker 2>saying the worst is behind us when it comes to

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<v Speaker 2>company tiping their bell.

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<v Speaker 3>Yeah, And frankly speaking, he had to say that because

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<v Speaker 3>both Microsoft and Google came up with very good numbers. Now,

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<v Speaker 3>when you look at AWS commitments, you know, they gave

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<v Speaker 3>out a figure called cloud commitments, which is people signing

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<v Speaker 3>long term contracts even in the last you know, I

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<v Speaker 3>would say one and a half to two years. Those

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<v Speaker 3>numbers have been very strong, twenty percent, thirty percent even higher,

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<v Speaker 3>which means people are making those commitments they're not just

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<v Speaker 3>using them, They're not using those cloud credits. They're just

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<v Speaker 3>pacing themselves into a variable cost model, and then when

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<v Speaker 3>economic conditions improve for their clients, they will, you know,

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<v Speaker 3>get the consumption up. And that's what we're seeing right now.

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<v Speaker 1>Anareg, what's your number one question for the call?

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<v Speaker 3>The number one question is can you break out your

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<v Speaker 3>AI workloads versus the non AI workloads on AWS? Because

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<v Speaker 3>Microsoft's already saying so, if Microsoft sales growth has let's say,

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<v Speaker 3>you know, thirty percent, seven percentage points of that is

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<v Speaker 3>because of AI, I want to know that exact number

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<v Speaker 3>for aw US. I don't think they're going to give

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<v Speaker 3>it this time, but that that's my number one question.

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<v Speaker 2>Hey, we forgive us, but we got earnings crossing again

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<v Speaker 2>right now. Shares AMD down about four point two percent

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<v Speaker 2>in the after hours. Second quarter revenue coming in at

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<v Speaker 2>five point four to six billion dollars estimates were for

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<v Speaker 2>the midpoint there five point seven first quarter just atdps,

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<v Speaker 2>did beat estimates. Should note also operating margin coming in

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<v Speaker 2>above estimates at twenty one percent versus estimates of twenty

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<v Speaker 2>point eight percent. First quarter capex, though coming in way

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<v Speaker 2>above estimates one hundred and forty two million dollars. Carrol

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<v Speaker 2>estimates were for one hundred and eighteen point four million dollars.

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<v Speaker 1>Amd On now down more than five percent. In the

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<v Speaker 1>after market, Amazon, we continue to talk about it. Their

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<v Speaker 1>cloud unit posting the strongest sales growth in a year,

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<v Speaker 1>a sign that the retailer's most profitable unit is recovering

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<v Speaker 1>from a slump as businesses resume spending on technology projects.

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<v Speaker 1>And we've seen the shares certainly rally here in the

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<v Speaker 1>after market. We're talking with Pudam Goyle and Honor Agrana

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<v Speaker 1>of our intelligence Bloomberg Intelligence team put them, is there

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<v Speaker 1>anything in here too that you get an idea of

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<v Speaker 1>kind of how consumers are doing? Certainly, Amazon is such

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<v Speaker 1>a great key metric when it comes to this what

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<v Speaker 1>are you seeing in that front?

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<v Speaker 4>I think Amazon continues to take share. So when you

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<v Speaker 4>look at the consumer dynamics today in retail, Amazon has

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<v Speaker 4>been taking share. Most of the consumer is still cautious,

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<v Speaker 4>they're still training down to value, they are spending where

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<v Speaker 4>they want to spend, and they're spending more on staples

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<v Speaker 4>than they are on discretionary. So I think the numbers

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<v Speaker 4>that they've posted today show that they continue to take share, and.

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<v Speaker 1>I just want to point in Amazon shaares now are

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<v Speaker 1>only up about one percent here, so they've definitely pared

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<v Speaker 1>back some of their earlier moves.

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<v Speaker 2>Put them on a report like this. I see the

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<v Speaker 2>way that Amazon is dominating when it comes to cloud,

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<v Speaker 2>when it comes to advertising, when it comes to online retail,

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<v Speaker 2>They're in healthcare now, They're getting everywhere. And I guess

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<v Speaker 2>my question for you is about regulatory risk here. FTC

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<v Speaker 2>has a suit filed against the company, and I'm wondering

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<v Speaker 2>how investors should think about regulatory risk here. I mean,

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<v Speaker 2>this is a close to two trillion dollar company.

0:11:08.280 --> 0:11:11.520
<v Speaker 4>Well, we have analysts that cover it on the regulatory side,

0:11:11.559 --> 0:11:14.760
<v Speaker 4>and I think so far the bi opinion is that

0:11:15.120 --> 0:11:18.720
<v Speaker 4>we don't see a big risk to the Amazon business

0:11:18.800 --> 0:11:21.480
<v Speaker 4>as it stands today, though we also don't see a

0:11:21.520 --> 0:11:25.200
<v Speaker 4>breakup happening. We put very low probability on that. You know,

0:11:25.200 --> 0:11:27.840
<v Speaker 4>when you think about the different businesses that Amazon competes,

0:11:27.880 --> 0:11:30.880
<v Speaker 4>and it is a dominant share in many of them,

0:11:31.080 --> 0:11:33.280
<v Speaker 4>but it's also a very small share in many of them,

0:11:33.320 --> 0:11:35.640
<v Speaker 4>like the few that you mentioned healthcare. You know, Amazon's

0:11:35.679 --> 0:11:38.400
<v Speaker 4>still a very small player in the healthcare business. In

0:11:38.440 --> 0:11:41.280
<v Speaker 4>the grocery business where they're trying to make in roads,

0:11:41.480 --> 0:11:44.760
<v Speaker 4>they're very small there. They are a large retailer, but

0:11:44.960 --> 0:11:47.920
<v Speaker 4>most of their retail business is third party operated more

0:11:47.920 --> 0:11:51.040
<v Speaker 4>than sixty percent. So there's arguments to be made on

0:11:51.080 --> 0:11:54.880
<v Speaker 4>both sides, but our opinion at BI is that it's

0:11:54.920 --> 0:11:57.400
<v Speaker 4>not going to be easy for the FTC to force

0:11:57.440 --> 0:11:58.120
<v Speaker 4>a breakup here.

0:11:58.240 --> 0:12:00.319
<v Speaker 2>I see Honor rog just nodding his head from sgo

0:12:00.440 --> 0:12:02.640
<v Speaker 2>right now. I'm wondering your thoughts on this an a

0:12:02.679 --> 0:12:03.960
<v Speaker 2>rug and if you have anything to add when it

0:12:03.960 --> 0:12:06.640
<v Speaker 2>comes to AWS, because certainly they're the dominant play. I mean,

0:12:06.640 --> 0:12:08.160
<v Speaker 2>they invented the category, no question.

0:12:09.120 --> 0:12:11.800
<v Speaker 3>Yeah, but they invented the category and Microsoft's been closing

0:12:11.800 --> 0:12:14.439
<v Speaker 3>that chair like for a while now, and in AI

0:12:14.880 --> 0:12:18.720
<v Speaker 3>Microsoft doing far better. Googled growing much faster, Microsoft going

0:12:18.840 --> 0:12:22.040
<v Speaker 3>even faster. So nobody can say that they dominate the

0:12:22.040 --> 0:12:24.560
<v Speaker 3>cloud space right now. You know, they have to watch

0:12:24.600 --> 0:12:27.079
<v Speaker 3>the heels at any given time you see the number

0:12:27.080 --> 0:12:30.120
<v Speaker 3>of product releases from AWS in the amount of you know,

0:12:30.160 --> 0:12:32.760
<v Speaker 3>marketing they're putting behind it just to say that they're

0:12:32.760 --> 0:12:35.560
<v Speaker 3>not behind Microsoft, So I would not say that they

0:12:35.559 --> 0:12:38.160
<v Speaker 3>are monopoly when it comes to cloud. I mean, there's

0:12:38.200 --> 0:12:39.320
<v Speaker 3>so many players at this point.

0:12:39.320 --> 0:12:40.800
<v Speaker 1>Well's so funny that you say that I'm reading to

0:12:40.840 --> 0:12:42.920
<v Speaker 1>the press release right now and there's like a ton

0:12:43.000 --> 0:12:46.520
<v Speaker 1>of stuff on AI. But it's a lot of It's

0:12:46.600 --> 0:12:48.679
<v Speaker 1>just a lot of stuff, And I guess, you know,

0:12:49.200 --> 0:12:50.960
<v Speaker 1>what are you looking for an a rag? Is you

0:12:51.040 --> 0:12:53.480
<v Speaker 1>read through like what they're doing here in Amazon Q

0:12:53.880 --> 0:12:56.160
<v Speaker 1>and what they're doing with salesforce? Like like what is

0:12:56.200 --> 0:12:58.440
<v Speaker 1>it that you're looking for as you pars through? What's

0:12:58.480 --> 0:12:59.480
<v Speaker 1>a lot of words.

0:13:00.720 --> 0:13:02.760
<v Speaker 3>Yeah, So the way you want to think about it,

0:13:02.800 --> 0:13:06.280
<v Speaker 3>Microsoft disclose some numbers. When we back into that, it

0:13:06.400 --> 0:13:09.880
<v Speaker 3>shows us that Microsoft just on their cloud business is

0:13:09.920 --> 0:13:13.120
<v Speaker 3>generating a billion dollars a quarter at this point, which

0:13:13.160 --> 0:13:16.240
<v Speaker 3>is a quarterly revenue of four billion dollars. Amazon's not

0:13:16.280 --> 0:13:18.280
<v Speaker 3>going to give any close to number like that. They

0:13:18.280 --> 0:13:21.160
<v Speaker 3>are nowhere close to that. So I think that's basically

0:13:21.200 --> 0:13:24.040
<v Speaker 3>shows that the competition is really tough right now and

0:13:24.080 --> 0:13:26.800
<v Speaker 3>they have to launch all these products in order for

0:13:27.080 --> 0:13:29.960
<v Speaker 3>enterprises or companies to embrace it so that they can

0:13:30.040 --> 0:13:32.760
<v Speaker 3>down the road give that number out. So if they

0:13:32.800 --> 0:13:34.600
<v Speaker 3>give a number out, I think it'll be a very

0:13:34.720 --> 0:13:37.440
<v Speaker 3>very different ballgame tomorrow, but I doubt that's going to

0:13:37.440 --> 0:13:38.040
<v Speaker 3>happen today.

0:13:38.080 --> 0:13:40.400
<v Speaker 2>Put on my I'm you know, in our conversations last

0:13:40.400 --> 0:13:43.400
<v Speaker 2>week about meta platforms, we spoke to your colleague Man Deep,

0:13:43.480 --> 0:13:48.679
<v Speaker 2>saying a lot about how advertising was, how AI had

0:13:48.720 --> 0:13:51.880
<v Speaker 2>meta platforms was being used to really help with advertising,

0:13:52.160 --> 0:13:54.120
<v Speaker 2>And I kind of want to frame the same question

0:13:54.240 --> 0:13:58.720
<v Speaker 2>to you. It's about e commerce and how what Amazon

0:13:58.840 --> 0:14:01.079
<v Speaker 2>is doing when it comes to We talk a lot

0:14:01.080 --> 0:14:04.160
<v Speaker 2>about that in the context of AWS, but how does

0:14:04.280 --> 0:14:07.120
<v Speaker 2>it help the core business getting people to buy more

0:14:07.160 --> 0:14:10.400
<v Speaker 2>stuff and get more stuff delivered at Amazon?

0:14:11.800 --> 0:14:15.360
<v Speaker 4>Yeah, I mean AI. Generative AI especially is crucial for retail.

0:14:15.400 --> 0:14:17.520
<v Speaker 4>In fact, we think it's one of the biggest drivers

0:14:17.840 --> 0:14:19.720
<v Speaker 4>to the search or the next leg of growth that

0:14:19.760 --> 0:14:22.400
<v Speaker 4>you're going to see online. When you think about generative

0:14:22.400 --> 0:14:25.239
<v Speaker 4>AI and you think about search, right, we go shop online,

0:14:25.480 --> 0:14:28.280
<v Speaker 4>we put something in the search bar, and we get

0:14:28.280 --> 0:14:30.840
<v Speaker 4>a million responses. Half of them, more than half of

0:14:30.840 --> 0:14:33.720
<v Speaker 4>them are not relevant. So as you increase the relevancy

0:14:33.880 --> 0:14:37.200
<v Speaker 4>of the search, you're going to also increase conversion because

0:14:37.240 --> 0:14:40.160
<v Speaker 4>you're giving customers what they want, so huge huge ROI

0:14:40.240 --> 0:14:42.920
<v Speaker 4>and getting the search right. And then outside of that,

0:14:43.000 --> 0:14:45.160
<v Speaker 4>you know, there is there are a lot of tools,

0:14:45.200 --> 0:14:49.200
<v Speaker 4>whether it's using genai to create your marketing, to create

0:14:49.320 --> 0:14:51.320
<v Speaker 4>product there are so many things that you could do

0:14:51.400 --> 0:14:54.720
<v Speaker 4>with genai and on the e commerce product side that

0:14:54.760 --> 0:14:58.080
<v Speaker 4>are really beneficial to the customer experience. And in fact,

0:14:58.120 --> 0:15:01.760
<v Speaker 4>you know, outfitting yourself for example, using AI tools, using

0:15:01.880 --> 0:15:04.960
<v Speaker 4>visual tools to be able to create these scenarios. It's

0:15:05.000 --> 0:15:07.960
<v Speaker 4>all about increasing conversion when it comes to using AI

0:15:08.280 --> 0:15:09.080
<v Speaker 4>for e commerce.

0:15:09.320 --> 0:15:12.280
<v Speaker 1>All right, guys, I'm still watching shares of Amazon up

0:15:12.320 --> 0:15:14.840
<v Speaker 1>about two point six percent this as it we mentioned

0:15:14.880 --> 0:15:19.160
<v Speaker 1>earlier reporting a strong cloud unit sales, rising AI demand.

0:15:19.200 --> 0:15:22.600
<v Speaker 1>But again that second quarter net sales forecast is a

0:15:22.600 --> 0:15:25.280
<v Speaker 1>little bit light than what the street is forecasting. What

0:15:25.400 --> 0:15:27.560
<v Speaker 1>could they say analog on the call that would make

0:15:27.600 --> 0:15:29.800
<v Speaker 1>you a little bit more nervous because right now investors

0:15:29.840 --> 0:15:31.600
<v Speaker 1>seem to be pretty pleased with this report.

0:15:33.000 --> 0:15:34.400
<v Speaker 3>Yeah, I mean in the cloud side, if they go

0:15:34.440 --> 0:15:36.320
<v Speaker 3>out and say that the growth for next quarter is

0:15:36.320 --> 0:15:38.200
<v Speaker 3>going to be much lower than what it is, and

0:15:38.320 --> 0:15:41.720
<v Speaker 3>it's a cause for concern because their competitors have not

0:15:41.800 --> 0:15:44.840
<v Speaker 3>said that. So one would imagine that if the current

0:15:44.880 --> 0:15:47.800
<v Speaker 3>quarter growth rate was around seventeen percent, they should grow

0:15:47.840 --> 0:15:50.760
<v Speaker 3>in that same brain sixteen seventeen percent in the next quarter. Also,

0:15:51.120 --> 0:15:52.720
<v Speaker 3>if they go out inside it's only going to be

0:15:52.800 --> 0:15:56.080
<v Speaker 3>ten twelve eleven, then I think that's a problem.

0:15:56.320 --> 0:15:58.200
<v Speaker 1>Same question to you put and what could they say

0:15:58.200 --> 0:15:59.600
<v Speaker 1>on the call that might make you be a little

0:15:59.600 --> 0:16:01.440
<v Speaker 1>bit more head in on this company.

0:16:02.360 --> 0:16:04.840
<v Speaker 4>If they say retail growth or the e commerce business

0:16:04.880 --> 0:16:06.960
<v Speaker 4>has slowed to little single digits, Okay, I would be

0:16:07.000 --> 0:16:08.680
<v Speaker 4>a little concerned or even turn negative.

0:16:08.760 --> 0:16:11.440
<v Speaker 1>All right, listen, We so appreciate both of you weighing

0:16:11.440 --> 0:16:14.440
<v Speaker 1>in on a company that's not a little complicated. I

0:16:14.440 --> 0:16:16.080
<v Speaker 1>don't know that I want to say complicated, but yeah,

0:16:16.080 --> 0:16:20.480
<v Speaker 1>a lot of moving pieces and so we do. Yeah,

0:16:20.520 --> 0:16:22.920
<v Speaker 1>and so great to get both of their perspectives. Put

0:16:22.920 --> 0:16:25.120
<v Speaker 1>them Goyle, she's senior analysts for e commerce at a

0:16:25.200 --> 0:16:29.440
<v Speaker 1>leisure off price retail on Zoom from India.

0:16:29.800 --> 0:16:32.000
<v Speaker 2>It's two am, so thank you put them.

0:16:32.000 --> 0:16:34.800
<v Speaker 1>Oh my god, we owe you, We owe you. And

0:16:34.880 --> 0:16:37.880
<v Speaker 1>Anna Ragrana always so helpful when we have to go

0:16:37.920 --> 0:16:40.960
<v Speaker 1>through these reports. Senior technology analyst Bloomberg Intelligence joining us

0:16:40.960 --> 0:16:42.760
<v Speaker 1>from our Chicago But are really both of them, We

0:16:42.880 --> 0:16:44.360
<v Speaker 1>so so appreciate the insight