Podcast – Short Selling | Amazon

14 June 2019

Global markets ​were higher overnight as energy shares turned attractive after oil prices rose sharply on concerns of supply disruption following suspected attacks on two tankers in the Gulf of Oman. ​

In the latest podcast, the majority of the episode is about short selling, and more educational this week.
To listen to: What is short selling? how to do it and risks. And Berkshire AGM Part 2 – CLICK HERE.

Stock in Focus: Amazon (AMZN:Nasdaq)

​​​​​​​​​​​​​​​​​Amazon delivered another solid result for first quarter of the 2019 financial year, with revenue of $59.7 billion, up +17% from last year in line with management guidance and market expectations as the e-commerce giant starts to show signs of deceleration, with top line growth ‘moderating’. Fortunately, it doesn’t appear to be a cause for concern as Amazon surprised the market significantly improving operating efficiencies across all business segments, widening operating margins to deliver net earnings per share of $7.09 per share, smashing market expectations by $2.41 per share and more than double the same corresponding period last year. 

A highlight was Amazon’s announcement to introduce free One-Day shipping to prime members, to improve service offerings and promote more regular online purchases for emergency daily products. This does come at a significant ramp up in investment which Amazon has been planning in the past as it gradually improved its delivery times, guiding for weaker earnings per share for the next quarter as Amazon focuses on overall growth. 

Because Amazon operates many businesses it is difficult to grasp how to value it, and the stock is still priced for expansive growth. 

We​ currently​ have a HOLD recommendation on ​Amazon.



Australia & New Zealand Market Movers

​​​​​​​​​​​​​​​​​​​​​​​​​​The Australian share market was a touch lower ​again ​yesterday (ASX 200 index -0.0​2​%)​ as t​he sharemarket rallied on the June labour force data but quickly gave up its upward momentum.
​In stock news, Wesfarmers shares dropped after downgrading its profit forecasts for Kmart and Target, citing subdued sales, heightened price competition and store closures.​ Shares in Tech darling Afterpay Touch tumbled after the Australian Transaction Reports and Analysis Centre (AUSTRAC) said it had ordered Afterpay to appoint an external auditor after a "period of ongoing engagement" where AUSTRAC identified concerns with Afterpay's compliance with anti-money-laundering laws.

The New Zealand market ​added to gains on Thursday (NZX 50 index +0.​18​%) as blue-chip stocks including Ebos Group, Auckland International Airport and Mainfreight all hit records.


3 Things Markets Will be Watching this Week

  1. ​​​​​Trade War headlines are likely to ​remain drivers of investor sentiment.
  2. Closely watched US inflation  data will be released on Thursday​.
  3. The latest monthly Chinese economic updates are published on Monday.

Have a Great Day,


In the latest podcast, the majority of the episode is about short selling, and more educational this week.

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