00:00Putnam, let me kick it off with you in terms of Amazon.
00:03What's jumping out here for you?
00:05Look, it looks like broad-based strength across the board.
00:09The retail numbers were particularly good.
00:11And that was expected because we had the prime day shift moving in from 3Q to 2Q.
00:15So overall, really nice numbers here on the retail side.
00:19Consumers came to Amazon to shop prime day sales.
00:21And the shift to online just continues to appear more and more apparent
00:25as we move through a tough consumer spending cycle.
00:27What's this third quarter net sales miss?
00:30$197 to $202 billion.
00:31The estimate was for $204 billion, Puna.
00:34I think part of it is the prime day shift, right?
00:37When you think about such a big deal.
00:38But analysts knew about that.
00:39So they should have.
00:40But we don't know how much, right?
00:42We don't know how much dollar volume has moved into 2Q.
00:44If you look at the beat that we saw, analysts were expecting revenues to be up.
00:49But they came in even higher than that, right?
00:5113.7% online revenues was the expectation.
00:54And they came in at 15%.
00:55So a couple of billion dollars there could be part of the movement that we're seeing here
01:00in the guidance as well.
01:02All right, Anirag, come on in on here.
01:04Let's talk about AWS.
01:07What's doing pretty well, to say the least?
01:11Yeah, actually much, much better than what I would have expected.
01:14I mean, going from $237 in constant currency is phenomenal just because the size of this
01:20business is so large.
01:21I mean, it's so much bigger than Oracle and so much bigger than Google.
01:24But it's a very big beat, frankly.
01:27And the bigger thing, the biggest surprise for me was the margins.
01:30I would have expected margins to go down with all these investments that actually went up.
01:34So, you know, kudos to the AWS team.
01:37And we look to hear more about guidance for next quarter and, you know, how much longer
01:41can these margins hold up?
01:43Anirag, the AI and chips run rate, the Ease Eclipse run rates of over $25 billion, contextualize
01:51that for us.
01:52As Romain said, a division of a division with $25 billion run rates.
01:57Yeah, I mean, to be honest, I don't really care that much about the AI net number.
02:02The number of the chips is the one that I find it more exciting because here is the thing.
02:07All these big companies that are spending all this CapEx, a large portion of that CapEx
02:12is going to buy GPUs, NVIDIA GPUs.
02:15If Amazon can go and figure out their workloads onto their own chips, it saves them massive amount
02:21of money and helps them recognize the big backlog that they have without having to, you know,
02:26give NVIDIA that cash flow.
02:27I think that's one of the biggest differentiators between Google, Amazon, and Microsoft is
02:31the first to have their own chips that people are embracing at a fast pace.
02:36Meanwhile, that's not the case with Microsoft.
02:39Yeah, I think it's just fascinating.
02:41As I said, I don't always think about Amazon as a chip company, but you got to remember that
02:44they are doing this.
02:45And increasingly, these big tech guys are doing it.
02:48Poonam, come on back in here.
02:50Anything here?
02:51I know we're still getting information.
02:53There's still stuff we're going to get on the analyst call.
02:54Anything, though, that you find is maybe something that's worth digging a little bit deeper
02:58into and asking about?
03:00I think the advertising business saw a nice pickup, right?
03:0426% growth rates this quarter is a step up from the close to 20% that they've been reporting
03:09for the past few quarters.
03:11Was that also led by the Prime Day shift, given such a big event moved into the second quarter,
03:16did advertising dollars shift too?
03:18And will we see that slow down a little in the next quarter?
03:22So I'm really looking to better understand how this Prime Day shift affected and helped
03:282Q across the board and what it really does to 3Q.
03:32They've never quantified it, so we're hoping to get some color.
03:35How big is Prime Day?
03:39Because I know we know from a metrics perspective, but Prime Day kind of started a few years ago
03:45as this offshoot of what, was it Alibaba doing Singles Day?
03:48Is that what sort of inspired it years ago?
03:51I mean, that could have inspired it, but you know, Prime Day was a once a year phenomenon.
03:56Yeah, and now it's like a week.
03:57It's now twice a year, right?
03:59So it's really just a move to pull shoppers to spend earlier.
04:04So if you think about the timing of Prime Day, right, this time they moved it into June,
04:08usually in July.
04:10So really capturing spend for back to school for at least peak holiday moments where consumers
04:15are looking to stretch their dollars, they're essentially taking the dollars up front and
04:20trying to get the consumers to spend it with them versus elsewhere.
04:24Does that happen?
04:25Yes and no, because around Prime Day, it's not just Amazon that's striking with deals.
04:30It's also Walmart.
04:31It's also Target.
04:31It's also Best Buy.
04:33Everyone is having their own version of deals around this day.
04:36Anything to get us to buy.
04:37I know how that works.
04:38Hey, just to remind everybody, we're talking with Poonam Goyal, Bloomberg Intelligence Senior
04:42Analyst for e-commerce and athleisure, Anna Raghrana, Bloomberg Intelligence Senior Technology
04:46Analyst, joining us.
04:48If you have a question, let us know.
04:50We'd love to bring you into the conversation.
04:52For those who are Bloomberg.com subscribers and terminal clients, ask a question of our
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04:58Just submit questions for our team to answer live on air.
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05:04Send them to Bloomberg.com slash ask radio.
05:07And then you can certainly catch their answers live on air with us.
05:11Hey, I want to just look at shares of Roblox real quick.
05:14The gaming company down about 11% in the after hours.
05:18Just taking a look at what exactly is happening.
05:21Second quarter, daily active users came in below estimates 123 million.
05:24The estimate was for 128.7 million users.
05:29That was really what missed the average analyst estimate.
05:32And that is what has investors concerned.
05:34Bookings came in a little shy.
05:36Hours engaged came in shy.
05:37Revenue did come in higher than expected, though.
05:40A loss per share at 26 cents.
05:41The estimate was for a loss percent at 34 cents.
05:44Loss per share, rather.
05:45Shares down 11.5% in the after hours.
05:47All right.
05:48So getting hammered.
05:49Going in the other direction.
05:50Shares of Amazon continuing to rally.
05:52Are Spencer Soper out with his story?
05:53Amazon reported cloud computing revenue that beat analyst estimates, with booming demand
05:58for artificial intelligence services, accelerating sales for the fifth straight quarter.
06:03Revenue jumped 37% to $42.2 billion at Amazon Web Services, which generates about a fifth
06:09of the company's revenue and most of its operating profit.
06:12It was the fastest pace of growth since the fourth quarter of 2021.
06:16Analysts on average forecast sales of $40.6 billion, according to data compiled by Bloomberg.
06:22You know, Anurag, you have Amazon against the other hyperscalers.
06:28What is it that's unique?
06:29I mean, you talked a little bit about the chips, and that certainly kind of keeps a lid
06:33on some of their costs and their access situation among the chip demands that we've seen out
06:38there.
06:39But what is it?
06:40What is the special sauce of Amazon?
06:44So the first and foremost, it is the largest public cloud provider.
06:47It has a much longer history of working with enterprises.
06:51So remember, when we talk about AI adoption, you think about ChatGPT app.
06:57It's primarily hosted on Microsoft Azure.
07:00That's a consumer app.
07:01But now you think about AWS and enterprise AI adoption.
07:04That's where a lot of large companies around the world would be building their application,
07:09or they would be infusing AI into their older application.
07:12So that's a big difference is the enterprise presence as well as the, and, you know, for
07:17the Microsoft is on the consumer side.
07:19Microsoft does both.
07:20But for Amazon, that's primarily the bread and butter.
07:22The other thing is they're also the key or the preferred cloud provider for Anthropic.
07:28And we have seen a massive boost in Anthropic's use for coding agents.
07:32And I think that's also helping AWS in that case.
07:35And then if you think, you know, the future of AI is enterprise adoption, you know, Amazon
07:41has a lot of data.
07:43It has a lot of services.
07:44So it's right in the middle of this entire, I would say, AI diffusion within companies.
07:50And then if you think, you know, it's a lot of data, you know, it's a lot of data.
07:50Now, you're going to be a little scholarship and then you're going to go down on the floor.
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