This is taking stock with PIM Fox and Kathleen Hayes on Bloomberg Radio. Amazon it beat on earnings per share buck seventy eight versus an estimated dollar twelve cents to share. It beat on second quarter net sales. The estimate was twenty nine a half billion that came at thirty point four. But it sees its third quarter operating income at fifty million to six hundred fifty million versus an estimated eight hundred fifteen million, So the share price is now down.
Bert Flickinger joins us now managing director at Strategic Resource Group here in New York City, also in our New York studio. To look at the numbers, Bird, what do you think so far? Amazon's numbers are phenomenal, Kathleen and PIM revenue increased thirty one percent last last year to date revenue increase work. They're dominating the developed world quicker than Genghis Khan or anyone from Series and Robot to Sam Wall never ever did uh the The earnings per
share are terrific. The one concerned people have in the aftermarket is Amazon's being conservative on guidance. But Amazon is always conservative on future guidance. Bert Flickinger, Who's Amazon gonna put out of business? Next? Amazon's not gonna put Walmart dot Com out of business, but neither Walmart dot Com nor anyone else can catch up. So, PAM, you're looking at everyone from dollar stores to discount stores, to grocery stores to fashion, specialty and accessory stores going out of
business worldwide. Everybody's looking to save more money with price discovery. Uh, save more for Amazon. Uh. Students, seniors, working class are getting crushed economically. Amazon's a solution to raise everyone's standard of living. Wow, that's a very bold statement. That's a
solution that brace everyone's standard of living. You have to whether it's the students I teach at Cornell University who come from around the world, or it's it's it's people in all walks of life that we're talking to, whether it's in the Middle East, Europe, Asia, or the America's um working people's students, seniors need a bargain better on
get those in in brick and mortar. I see bargains all over the place where they're they're bargains all over, But there's Amazon provides the depth and range of assortment, free, free delivery, great styles and colors matching, and in many states and provinces no sales tax. So with with Amazon, it's a great solution. To your point, people still go to go to stores for UH style and and fit.
But one of the things that's really really hurting all the malls is the mediocre creative that's coming out of the Hollywood studios. So customer counts are down in the malls into pimps present point. With more and more bricks based retailers going out of business, that's killing the customer counts even for the successful retailers. So everybody in shopping
malls and centers are suffering. In Amazon's capitalizing, well, just to give you this comparison, right, if you take a look at the sales of Amazon there on a run rate to do about a hundred and twenty billion a year, right, Walmart run rate about four hundred and eighty right billion. If you take a look at the market cap though, market cap of Walmart two hundred and twenty eight billion dollars market cap of Amazon three hundred and fifty five billion dollars. There win in the war as far as
market capitalization, what people think the company is worth. Think what it's worth and look at well managed companies like Macy's Bloomingdale's to your point of growth PIM Macy's Bloomingdale's is about twenty five billion combined. That's what Amazon is adding in new sales every year. Chain the size of Macy's and Bloomingdale's. And Macy's and Bloomingdale's is dominant in department stores worldwide by far the biggest. Best. Do you
buy Amazon stock now? I would, Kathleen. Amazon's blown through both both my annual estimates, the less a few years two years ago at this time I predicted from five fifty to six fifty. When it was at six hundred, I predicted seven fifty at this point, see it being unstoppable both competitively and economically to at least eight hundred. Full disclosure, own own Amazon and will continue to own
Amazon's long term holding. I just mentioned that the shares of Amazon are higher right now by nearly five percent in after hours trading. But one more thing on on Amazon, the web services division. I know you're not a tech geek, at least you don't play one on radio, war on television, but Amazon Web Services. We were just talking with Roger mcmeee the deal nine point three billion dollars Oracle buying net Suite. This is a big and growing business for
Amazon that other retailers don't seem to have. Pammy right A w S or Amazon Web Services is a phenomenal business. It's nine percent of Amazon currently, the segment of the markets growing by over three hundred billion dollars per year, and Amazon's leader fire ahead of Google, fire ahead of IBM, Oracle everyone else. So in terms of the catch up factor,
does anybody catch up with Amazon? Now? Is there any hope Kathleen, Amazon's unstoppable past president in future because Jeff Bezos had the great strategic vision to invest maximum capex for decades. Uh, It's something the Roman Empire did its first two hundred years, and there been long term Roman empires of retailing, but no one's committed the capex, whether
it's the Walden family at Walmart nor anyone else. So, Uh, Amazon is going to continue to grow, harvesting it's its capex, and its competitors don't have the balance sheets to beat Amazon, Thank you very much. Bert Flickinger, he is managing director of Strategic Resource Group. Shares of Amazon up nearly five percent in after hours trading, after reporting second quarter earnings and revenue that exceeded estimates. This is Bloomberg