On Wall Street, the analysts really like it when a company exceeds the estimates, because it is doing better than the analysts have forecasted. The other aspect about Wall Street is although it loves growth and growing companies, it loves discipline to make cost cuts when the growth slows. During the pandemic, e-commerce for the consumer and business was the big thing and it seemed Amazon was expanding to every state and every country around the world. When the pandemic was announced it was over and people could go back shopping, Wall Street demanded Amazon cut because growth levels were down or leveling off. In a tech company, Wall Street wants to see layoffs.

In an article published by Reuters, Amazon reported quarterly sales and profit ahead of expectations and the stock price rose.

Chief executive Andy Jassy has aimed to slash spending across Amazon’s vast array of business. Both the cloud and advertising business remain profitable. Amazon had 300,000 corporate staff and 1.47 million people in total and has reduced the work force by 9%.

Sales of the company was $127 billion and they are expecting the same ballpark in the next quarter.

Linking to dividend paying stocks, trends on Wall Street come and go, sometimes it is growth at all levels, sometimes it cutting costs, sometimes it is what divisions are profitable, sometimes it debt levels, sometimes it is raising equity. trends come and go. What is never a trend is investing in profitable companies which can pay a dividend helps you manage the trends to a greater degree. If a company can maintain its margins, as an investor you will notice the trends but to not have to participate in them. Sometimes you will ask management how are they taking advantage of the trends?

There are more questions than answers, till the next time – to raising questions.