"Expectations are getting ahead of themselves," Cakmak said. "When you look at the quarter, the reason of the miss on the margins was that in order to meet the demand that was so great, they had a higher variable cost than expected."
Expectations, Results And A Look Ahead
Amazon reported its fourth-quarter results on Thursday, in which the e-commerce giant reported an earnings per share of $1.00 – noticeably short of the $1.56 per share analysts were expecting.
However, Cakmak suggested that the investments Amazon is making in its business weren't "fully appreciated" by the investment community. Specifically, the company is spending billions of dollars in its content, investing in a "massive" logistics network with planes and ships and a same day delivery, not to mention its AWS segment.
Expanding on Amazon's large investments in logistics, the investment pro suggested that the public should give the company's CEO Jeff Bezos "the benefit of the doubt."
The logistics investments will ultimately "make sense," Cakmak argued, as investors will come to appreciate the efficiencies Amazon was able to create through its investments today.
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