Diamonds and Dogs

7/29/22

Amazon (AMZN) having a good day. Amazon is up 11% today and up over 30% from the June lows following earnings. Earnings were actually not great, reporting a quarterly loss as sales rose 7% year over year to $121.23 billion, ahead of estimates. Their best department, Amazon Web Services or their company's cloud computing arm, grew 33% in the quarter. Barron's recently made the case that Amazon shares could eventually double or triple as the company unlocks more value in particular from Amazon Web Services.

Not all tech is higher. Intel (INTC) the former chip juggernaut is down 8% after missing earnings by a wide margin, as sales fell 17.3% to $15.3 billion, missing estimates by 14%. The company also lowered guidance as well. Management is hoping this quarter is the bottom with the company rebuilding from here. Intel will benefit from the $52 billion CHIPS Act that will allow them to build more plants cheaply in the US.