TMTB: AMZN AAPL INTC Recaps

Getting these AMZN + AAPL + INTC Recaps out early…will be out with more a bit later…..

AMZN: Q4 Op Inc guide outshines in a solid print, moving the profitability bull case back in front of investor’s minds. AWS comes in at 19% vs bogeys of 20-21%, but Jassy said they have more demand that can be fulfilled, implying accel ahead.

First, the #s:
Q4 Sales were guided slightly below mid pt $181.5B to $188.5B vs street $186.36B
Q4 EBIT Guided to $16-$20B vs street at $17.5B and bogeys which were lower than that as #s had been lowered heading into the print. Implies a record high 11% operating margin.

Q3 EBIT also crushed coming in at $17.4B vs street at $14.75B and clearing high end of the guide by $1.4B implying 39% incremental margins. AWS and International Retail both posted record high operating margins and North America Retail Margins reached their 2nd highest level in five years. 200bps of AWS margin improvement was helped by extended server life estimates starting in early 2024 and more controlled headcount growth. Both North America and International segments posted their seventh straight quarter of year-over-year margin gains.