{"id":7749,"date":"2022-11-06T14:50:56","date_gmt":"2022-11-06T14:50:56","guid":{"rendered":"https:\/\/dmsretail.com\/RetailNews\/jason-scot-show-episode-298-amazon-q3-2022-earnings\/"},"modified":"2022-11-06T14:50:56","modified_gmt":"2022-11-06T14:50:56","slug":"jason-scot-show-episode-298-amazon-q3-2022-earnings","status":"publish","type":"post","link":"https:\/\/dmsretail.com\/RetailNews\/jason-scot-show-episode-298-amazon-q3-2022-earnings\/","title":{"rendered":"Jason &#038; Scot Show Episode 298 &#8211; Amazon Q3 2022 Earnings"},"content":{"rendered":"<p> <p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/>\n<\/p>\n<div>\n<p>A weekly podcast with the latest e-commerce news and events. Episode 298 is a recap of Amazon\u2019s Q3 2022 Earnings.<\/p>\n<p> <span id=\"more-27375\"\/><\/p>\n<p><strong>Subscribe:<br \/><\/strong><\/p>\n<figure><iframe loading=\"lazy\" style=\"border: none;\" src=\"http:\/\/html5-player.libsyn.com\/embed\/episode\/id\/24876099\/height\/360\/width\/640\/theme\/standard-mini\/autoplay\/no\/autonext\/no\/thumbnail\/yes\/preload\/no\/no_addthis\/no\/direction\/backward\/no-cache\/true\/\" width=\"640\" height=\"360\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" data-mce-type=\"bookmark\" class=\"mce_SELRES_start\">?<\/span><span data-mce-type=\"bookmark\" style=\"display: inline-block; width: 0px; overflow: hidden; line-height: 0;\" class=\"mce_SELRES_start\">?<\/span><\/iframe><\/figure>\n<p>Episode 298 is a recap of Amazon\u2019s Q3 2022 Earnings Report.<\/p>\n<p>Episode 298 of the Jason &amp; Scot show was recorded on Friday October 28th, 2022.<\/p>\n<h2 id=\"chapter\">Transcript<\/h2>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[0:23]<\/small>\u00a0<span title=\"0:23 - 0:26\" data-start=\"00:00:23.135\" data-end=\"00:00:25.803\" data-spk=\"0\" data-label=\"Jason\">Welcome to the Jason and Scot show<\/span><br \/><span title=\"0:26 - 0:38\" data-start=\"00:00:25.665\" data-end=\"00:00:38.332\" data-spk=\"0\" data-label=\"Jason\">this is episode 298 being recorded on Friday October 28 2022 I\u2019m your host Jason retailgeek Goldberg and as usual I\u2019m here with your co-host Scot Wingo.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[0:38]<\/small>\u00a0<span title=\"0:38 - 0:42\" data-start=\"00:00:38.459\" data-end=\"00:00:42.370\" data-spk=\"1\" data-label=\"Scot\">Hey Jason and welcome back Jason Scott show listeners<\/span><br \/><span title=\"0:42 - 0:49\" data-start=\"00:00:42.292\" data-end=\"00:00:49.262\" data-spk=\"1\" data-label=\"Scot\">Jason wouldn\u2019t be a Jason Scott show if we didn\u2019t have a Little Star Wars talk I have a confession,<\/span><br \/><span title=\"0:49 - 0:57\" data-start=\"00:00:49.335\" data-end=\"00:00:57.441\" data-spk=\"1\" data-label=\"Scot\">I\u2019m really digging and or I think the rest of the Star Wars universe is out there hating on it but I\u2019m really enjoying it I really<\/span><br \/><span title=\"0:57 - 1:07\" data-start=\"00:00:57.261\" data-end=\"00:01:06.617\" data-spk=\"1\" data-label=\"Scot\">I liked the character from Rogue one and it\u2019s been fun seeing kind of a slower more character-driven Star Wars so have you had a chance to watch that at all.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:07]<\/small>\u00a0<span title=\"1:07 - 1:16\" data-start=\"00:01:06.827\" data-end=\"00:01:15.919\" data-spk=\"0\" data-label=\"Jason\">I have I have and I\u2019m with you now I\u2019m not sure I was with you at the beginning it took me a little while to warm up to it.<\/span><br \/><span title=\"1:16 - 1:23\" data-start=\"00:01:16.130\" data-end=\"00:01:23.112\" data-spk=\"0\" data-label=\"Jason\">But definitely the last three or four episodes have been a lot more engaging so now I\u2019m eager for the next episode to come out.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:24]<\/small>\u00a0<span title=\"1:24 - 1:41\" data-start=\"00:01:23.761\" data-end=\"00:01:41.409\" data-spk=\"1\" data-label=\"Scot\">Yeah and then when I haven\u2019t seen it it\u2019s getting a lot of buzz those tales of the Jedi which this is kind of from the right before A New Hope ERA with and or and then tells of the Jedi goes back to the prequels so talking about some of the characters there and then clone wars and stuff so that\u2019s on my list of things I\u2019m going to do this weekend.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:41]<\/small>\u00a0<span title=\"1:41 - 1:53\" data-start=\"00:01:41.181\" data-end=\"00:01:52.634\" data-spk=\"0\" data-label=\"Jason\">Fun I watch the first episode of that this won\u2019t be a problem for you but we\u2019re like oh cool another animated Star Wars series this would be great to watch with our seven year old and it\u2019s.<\/span><br \/><span title=\"1:53 - 1:57\" data-start=\"00:01:52.827\" data-end=\"00:01:57.195\" data-spk=\"0\" data-label=\"Jason\">A little dark it\u2019s a little it\u2019s a little adult for a seven-year-old.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[1:57]<\/small>\u00a0<span title=\"1:57 - 1:59\" data-start=\"00:01:56.919\" data-end=\"00:01:59.352\" data-spk=\"1\" data-label=\"Scot\">Had to fast forward some places.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[1:59]<\/small>\u00a0<span title=\"1:59 - 2:01\" data-start=\"00:01:59.052\" data-end=\"00:02:00.752\" data-spk=\"0\" data-label=\"Jason\">Yeah we had to be ready.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:01]<\/small>\u00a0<span title=\"2:01 - 2:08\" data-start=\"00:02:01.432\" data-end=\"00:02:08.348\" data-spk=\"1\" data-label=\"Scot\">Well thanks for joining us everyone we wanted to talk to this is the you know we\u2019re in this critical part of the retailgeek<\/span><br \/><span title=\"2:08 - 2:15\" data-start=\"00:02:08.174\" data-end=\"00:02:14.543\" data-spk=\"1\" data-label=\"Scot\">calendar where we\u2019re barreling towards Halloween we got Q3 behind us and we\u2019re<\/span><br \/><span title=\"2:14 - 2:23\" data-start=\"00:02:14.387\" data-end=\"00:02:22.613\" data-spk=\"1\" data-label=\"Scot\">were basically into the holiday season so we wanted to update everyone on some of the releases that came out here from the big<\/span><br \/><span title=\"2:22 - 2:31\" data-start=\"00:02:22.494\" data-end=\"00:02:30.672\" data-spk=\"1\" data-label=\"Scot\">companies specifically Amazon we\u2019re going to take a deep dive into that but I always think it\u2019s interesting to kind of see the setup longtime listeners will remember that<\/span><br \/><span title=\"2:31 - 2:39\" data-start=\"00:02:30.552\" data-end=\"00:02:39.210\" data-spk=\"1\" data-label=\"Scot\">one thing I think both Jason are proud of is we identified at Apple\u2019s changed privacy called IDF a some people call it a TT<\/span><br \/><span title=\"2:39 - 2:47\" data-start=\"00:02:39.109\" data-end=\"00:02:46.896\" data-spk=\"1\" data-label=\"Scot\">I\u2019m just going to call it I DFA to keep it simple as this huge problem that no one was willing paying attention to and we are still feeling the ripples for that.<\/span><br \/><span title=\"2:47 - 2:50\" data-start=\"00:02:47.335\" data-end=\"00:02:50.141\" data-spk=\"1\" data-label=\"Scot\">What\u2019s been Jason two years now two years later 18 months.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[2:51]<\/small>\u00a0<span title=\"2:51 - 2:53\" data-start=\"00:02:50.754\" data-end=\"00:02:52.671\" data-spk=\"0\" data-label=\"Jason\">Yeah it\u2019s crazy.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[2:52]<\/small>\u00a0<span title=\"2:52 - 2:59\" data-start=\"00:02:52.371\" data-end=\"00:02:59.395\" data-spk=\"1\" data-label=\"Scot\">Yes so it\u2019s gotten it\u2019s gotten really crazy so so this the lead up to Amazon started with Snapchat as if we clean does<\/span><br \/><span title=\"2:59 - 3:03\" data-start=\"00:02:59.257\" data-end=\"00:03:02.520\" data-spk=\"1\" data-label=\"Scot\">and I say this I\u2019ve said this for the last three quarters.<\/span><br \/><span title=\"3:03 - 3:16\" data-start=\"00:03:03.097\" data-end=\"00:03:16.467\" data-spk=\"1\" data-label=\"Scot\">Horst the so not only do their you know they had this period of time where they felt like they had stabilized but it\u2019s very clear the management team has no idea what\u2019s going on with idea if a they don\u2019t have a solution in Wall Street has kind of lost all.<\/span><br \/><span title=\"3:17 - 3:24\" data-start=\"00:03:16.810\" data-end=\"00:03:23.828\" data-spk=\"1\" data-label=\"Scot\">All hope and then their quarterly calls are just total Bedlam like it\u2019s a nothing I\u2019ve ever seen before so.<\/span><\/p>\n<p><small>[3:24]<\/small>\u00a0<span title=\"3:24 - 3:33\" data-start=\"00:03:24.285\" data-end=\"00:03:33.172\" data-spk=\"1\" data-label=\"Scot\">If you\u2019re an entrepreneur and want to see what a reason not to go public go to listen to one of the Snapchat Wall Street colors they do not go well.<\/span><\/p>\n<p><small>[3:33]<\/small>\u00a0<span title=\"3:33 - 3:40\" data-start=\"00:03:33.389\" data-end=\"00:03:39.992\" data-spk=\"1\" data-label=\"Scot\">And then so that was that was kind of a bit of a train wreck but not surprised that this kind of like the third Trainwreck so you\u2019re kind of used to it<\/span><br \/><span title=\"3:40 - 3:51\" data-start=\"00:03:39.890\" data-end=\"00:03:51.403\" data-spk=\"1\" data-label=\"Scot\">I think the one thing that started the spook Wall Street was Google came out on the 25th and they basically their results were below expectations and they<\/span><br \/><span title=\"3:51 - 4:00\" data-start=\"00:03:51.380\" data-end=\"00:03:59.858\" data-spk=\"1\" data-label=\"Scot\">YouTube specifically they have their segments we talked a lot about the Amazon segments but they have a they have a search segment a third-party search segment like a<\/span><br \/><span title=\"4:00 - 4:12\" data-start=\"00:03:59.756\" data-end=\"00:04:11.966\" data-spk=\"1\" data-label=\"Scot\">first party search didn\u2019t call this but they have the I guess they call it the network which is Google off of Google so that would be like the Apple search experience that they have the Google search experience than they have the YouTube and all these other things<\/span><br \/><span title=\"4:12 - 4:14\" data-start=\"00:04:11.961\" data-end=\"00:04:14.034\" data-spk=\"1\" data-label=\"Scot\">within the alphabet family<\/span><br \/><span title=\"4:14 - 4:26\" data-start=\"00:04:13.896\" data-end=\"00:04:25.703\" data-spk=\"1\" data-label=\"Scot\">well the YouTube one is under a lot of pressure and it\u2019s not really clear it feels like it\u2019s duly suffering from idea of a problems like advertisers are not being able to track the efficacy of those YouTube videos anymore<\/span><br \/><span title=\"4:26 - 4:33\" data-start=\"00:04:25.535\" data-end=\"00:04:32.698\" data-spk=\"1\" data-label=\"Scot\">but then also The Tick-Tock you know so you would know better than I do I only have one 16 year old and a<\/span><br \/><span title=\"4:33 - 4:39\" data-start=\"00:04:32.626\" data-end=\"00:04:39.320\" data-spk=\"1\" data-label=\"Scot\">ten-year-old nice to reference but seems like everyone under a certain age and even over,<\/span><br \/><span title=\"4:39 - 4:52\" data-start=\"00:04:39.350\" data-end=\"00:04:52.432\" data-spk=\"1\" data-label=\"Scot\">even creeping into our age group is just spending hours of looking at Tick-Tock videos so that has become a huge problem for YouTube because there\u2019s only so many hours in the day and if you\u2019re looking at Tik-Tok videos during all of them you\u2019re not watching YouTube<\/span><br \/><span title=\"4:52 - 4:57\" data-start=\"00:04:52.360\" data-end=\"00:04:57.191\" data-spk=\"1\" data-label=\"Scot\">do you have any insights into the tick tock world.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[4:57]<\/small>\u00a0<span title=\"4:57 - 5:07\" data-start=\"00:04:56.891\" data-end=\"00:05:06.601\" data-spk=\"0\" data-label=\"Jason\">Yeah no I actually think it might be interesting to explore a Tick-Tock deep dive in an upcoming episode because it it really is<\/span><br \/><span title=\"5:06 - 5:13\" data-start=\"00:05:06.457\" data-end=\"00:05:13.019\" data-spk=\"0\" data-label=\"Jason\">the social platform that feels like it\u2019s grabbing all the oxygen right now I thought the audience engagement<\/span><br \/><span title=\"5:13 - 5:20\" data-start=\"00:05:12.827\" data-end=\"00:05:19.815\" data-spk=\"0\" data-label=\"Jason\">is way up there\u2019s you know there\u2019s been a bunch of interesting Evolutions about<\/span><br \/><span title=\"5:20 - 5:28\" data-start=\"00:05:19.743\" data-end=\"00:05:27.621\" data-spk=\"0\" data-label=\"Jason\">segments of the audience that are using Tik-Tok is their primary search engine which is interesting and surprising I think to a lot of people<\/span><br \/><span title=\"5:28 - 5:35\" data-start=\"00:05:27.561\" data-end=\"00:05:35.096\" data-spk=\"0\" data-label=\"Jason\">Google is certainly trying to position Tik-Tok search is a viable competitor to Google which you know might have be true have be.<\/span><br \/><span title=\"5:35 - 5:39\" data-start=\"00:05:35.253\" data-end=\"00:05:38.623\" data-spk=\"0\" data-label=\"Jason\">Antitrust and then.<\/span><br \/><span title=\"5:39 - 5:50\" data-start=\"00:05:38.852\" data-end=\"00:05:49.962\" data-spk=\"0\" data-label=\"Jason\">Also true that we have been on these recent studies recently that a lot of Millennials are using Tick-Tock primary as their primary source of news so that\u2019s another.<\/span><br \/><span title=\"5:50 - 5:55\" data-start=\"00:05:50.131\" data-end=\"00:05:54.980\" data-spk=\"0\" data-label=\"Jason\">You know Factor but it\u2019s just winning a lot of entertainment minutes right now.<\/span><br \/><span title=\"5:55 - 6:03\" data-start=\"00:05:55.101\" data-end=\"00:06:03.495\" data-spk=\"0\" data-label=\"Jason\">Which also by the way means it\u2019s winning a lot of advertising dollars because the advertisers want to go where the engaged eyeballs are.<\/span><br \/><span title=\"6:04 - 6:06\" data-start=\"00:06:03.850\" data-end=\"00:06:06.037\" data-spk=\"0\" data-label=\"Jason\">That\u2019s been a big thing.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[6:06]<\/small>\u00a0<span title=\"6:06 - 6:16\" data-start=\"00:06:06.205\" data-end=\"00:06:16.126\" data-spk=\"1\" data-label=\"Scot\">Yeah the other thing that\u2019s interesting and I didn\u2019t put this in the show notes just occurred to me both Android and Apple are seeing softness in their App Store revenues.<\/span><\/p>\n<p><small>[6:16]<\/small>\u00a0<span title=\"6:16 - 6:21\" data-start=\"00:06:16.295\" data-end=\"00:06:21.035\" data-spk=\"1\" data-label=\"Scot\">Specifically in the game segment so there\u2019s two schools of thought there one is<\/span><br \/><span title=\"6:21 - 6:33\" data-start=\"00:06:20.849\" data-end=\"00:06:32.639\" data-spk=\"1\" data-label=\"Scot\">there\u2019s so one of it is the idea of a his rippled into that where the games are not getting as many new customers because they\u2019re not running as much advertising because they can\u2019t measure the efficacy of it<\/span><br \/><span title=\"6:32 - 6:46\" data-start=\"00:06:32.447\" data-end=\"00:06:45.546\" data-spk=\"1\" data-label=\"Scot\">this one\u2019s interesting because this could be an indication apple shot themselves in the foot with IDF a most impact we\u2019ve talked about on this show have been beneficial to Amazon where you know crushing Facebook or hurting Google<\/span><br \/><span title=\"6:45 - 6:52\" data-start=\"00:06:45.342\" data-end=\"00:06:52.030\" data-spk=\"1\" data-label=\"Scot\">that\u2019s obviously kind of you know those are the Nemesis nemus I the Nemesis of<\/span><br \/><span title=\"6:52 - 7:02\" data-start=\"00:06:51.934\" data-end=\"00:07:02.444\" data-spk=\"1\" data-label=\"Scot\">of Apple but this is one where you\u2019re starting to see it actually impact them in I think they called their services Revenue so that\u2019s one school of thought the other school of thought is in a<\/span><br \/><span title=\"7:02 - 7:10\" data-start=\"00:07:02.282\" data-end=\"00:07:10.484\" data-spk=\"1\" data-label=\"Scot\">yeah I don\u2019t give us enough data on this is that know it\u2019s Tick-Tock because people are just sitting there watching so many technical games it\u2019s replaced<\/span><br \/><span title=\"7:10 - 7:24\" data-start=\"00:07:10.376\" data-end=\"00:07:23.728\" data-spk=\"1\" data-label=\"Scot\">deployment of casual games so people aren\u2019t paying playing these addictive little Candy Crush type games and Clash of Clans there they\u2019re watching The Tick-Tock videos so so it\u2019s interesting to watch these consumer behaviors are changing very<\/span><br \/><span title=\"7:24 - 7:25\" data-start=\"00:07:23.566\" data-end=\"00:07:24.719\" data-spk=\"1\" data-label=\"Scot\">quickly in this<\/span><br \/><span title=\"7:25 - 7:38\" data-start=\"00:07:24.546\" data-end=\"00:07:38.060\" data-spk=\"1\" data-label=\"Scot\">post covid World in interesting ways and it\u2019s hard to tease out exactly what\u2019s going on but there\u2019s definitely you know some some big changes out here that I think will Ripple into our listeners in the retail e-commerce world as well.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[7:38]<\/small>\u00a0<span title=\"7:38 - 7:45\" data-start=\"00:07:38.354\" data-end=\"00:07:44.639\" data-spk=\"0\" data-label=\"Jason\">Yeah it is I do think both of those things are factors I also think there\u2019s another interesting.<\/span><br \/><span title=\"7:45 - 7:52\" data-start=\"00:07:44.880\" data-end=\"00:07:51.664\" data-spk=\"0\" data-label=\"Jason\">Thing happening with the the game revenue from the app store\u2019s I feel like their history is repeating itself a little bit,<\/span><br \/><span title=\"7:52 - 8:04\" data-start=\"00:07:51.683\" data-end=\"00:08:03.995\" data-spk=\"0\" data-label=\"Jason\">if you\u2019re super old-school like you and I you remember all the old console-based Wars right like Nintendo vs. Sega and Atari and in television and one of the themes that played out on those platform things is.<\/span><br \/><span title=\"8:05 - 8:12\" data-start=\"00:08:04.548\" data-end=\"00:08:11.831\" data-spk=\"0\" data-label=\"Jason\">Often one of the platforms would be super open and invite a bunch of Publishers to make it really easy to publish titles and so there would.<\/span><br \/><span title=\"8:12 - 8:21\" data-start=\"00:08:12.143\" data-end=\"00:08:20.784\" data-spk=\"0\" data-label=\"Jason\">Bi huge dearth of titles but they would mostly be of low quality and then another platform would make it really hard to publish titles which would really restrict the.<\/span><br \/><span title=\"8:21 - 8:28\" data-start=\"00:08:20.935\" data-end=\"00:08:28.416\" data-spk=\"0\" data-label=\"Jason\">The amount of titles that were available but they tended to be better and over the history of video games the latter strategy has always won,<\/span><br \/><span title=\"8:28 - 8:37\" data-start=\"00:08:28.458\" data-end=\"00:08:36.708\" data-spk=\"0\" data-label=\"Jason\">that way when you have too many crappy titles eventually like the audience is get disenfranchised and they leave the platform.<\/span><br \/><span title=\"8:37 - 8:45\" data-start=\"00:08:36.889\" data-end=\"00:08:44.874\" data-spk=\"0\" data-label=\"Jason\">Does feel a little bit like that is what\u2019s like the App Store Revenue became so lucrative for these guys that they made it super easy for everyone to<\/span><br \/><span title=\"8:45 - 8:56\" data-start=\"00:08:44.851\" data-end=\"00:08:55.685\" data-spk=\"0\" data-label=\"Jason\">bring titles there\u2019s no more discovery on the platform because there\u2019s the signal-to-noise ratio is so poor that the only way you would discover a new game title would be via.<\/span><br \/><span title=\"8:56 - 9:02\" data-start=\"00:08:55.847\" data-end=\"00:09:02.259\" data-spk=\"0\" data-label=\"Jason\">A Facebook ad which no longer works right I can sew it all of this is kind of coming to roost it feels like.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[9:03]<\/small>\u00a0<span title=\"9:03 - 9:07\" data-start=\"00:09:03.040\" data-end=\"00:09:07.372\" data-spk=\"1\" data-label=\"Scot\">Got it yeah the and then so<\/span><br \/><span title=\"9:07 - 9:21\" data-start=\"00:09:07.229\" data-end=\"00:09:20.604\" data-spk=\"1\" data-label=\"Scot\">that got everyone kind of wonky and then Facebook \/ meta did their release and that was just that was that went from their last Q2 was kind of concerning and then this was kind of a train wreck so there<\/span><br \/><span title=\"9:21 - 9:36\" data-start=\"00:09:20.557\" data-end=\"00:09:35.609\" data-spk=\"1\" data-label=\"Scot\">expenses are running rampant they are spending a lot of money on virtual reality and they\u2019re seeing no revenue from that that revenue is way off where it should be they are announcing they announced like did you see this the pro headset which is like<\/span><br \/><span title=\"9:35 - 9:44\" data-start=\"00:09:35.435\" data-end=\"00:09:43.625\" data-spk=\"1\" data-label=\"Scot\">twelve hundred dollars and it can track your your arms and feet and even your facial expressions or something it\u2019s super fancy but.<\/span><br \/><span title=\"9:44 - 9:52\" data-start=\"00:09:43.938\" data-end=\"00:09:51.599\" data-spk=\"1\" data-label=\"Scot\">You know they\u2019re not seeing any engagement from people buying the Oculus I guess they don\u2019t call that anymore buying the devices and.<\/span><\/p>\n<p><small>[9:52]<\/small>\u00a0<span title=\"9:52 - 10:01\" data-start=\"00:09:52.339\" data-end=\"00:10:00.805\" data-spk=\"1\" data-label=\"Scot\">The Medical West buying the medic West or any of that kind of stuff so then you would think they would get on there and say alright Q3 was rough we\u2019re going to<\/span><br \/><span title=\"10:01 - 10:14\" data-start=\"00:10:00.679\" data-end=\"00:10:13.983\" data-spk=\"1\" data-label=\"Scot\">we\u2019re going to moderate this going into the queue for they\u2019re like nope we\u2019re going to double down and it\u2019s got actually get worse in Q4 so that that freak people out Jim Cramer on CNBC MSNBC Junkie,<\/span><br \/><span title=\"10:14 - 10:29\" data-start=\"00:10:14.037\" data-end=\"00:10:28.759\" data-spk=\"1\" data-label=\"Scot\">he had the previously days he said that you know he predicted they would come to their senses and do a little layoff and this kind of thing and it was the opposite and he got on TV and apologize to the viewers and got kind of emotional there so that was that was interesting and you know day<\/span><br \/><span title=\"10:29 - 10:30\" data-start=\"00:10:28.627\" data-end=\"00:10:30.255\" data-spk=\"1\" data-label=\"Scot\">there they seem,<\/span><br \/><span title=\"10:30 - 10:40\" data-start=\"00:10:30.298\" data-end=\"00:10:40.038\" data-spk=\"1\" data-label=\"Scot\">totally distracted by the metaverse and not really didn\u2019t really have much commentary around ads it\u2019s off a fair amount they\u2019re due to IDF a as well and then.<\/span><br \/><span title=\"10:40 - 10:44\" data-start=\"00:10:40.129\" data-end=\"00:10:44.413\" data-spk=\"1\" data-label=\"Scot\">A bright spot was then yesterday morning so this is Thursday morning<\/span><br \/><span title=\"10:44 - 10:51\" data-start=\"00:10:44.383\" data-end=\"00:10:51.137\" data-spk=\"1\" data-label=\"Scot\">Shopify announced and they had a little bit of positive news what did you see there Jason.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[10:51]<\/small>\u00a0<span title=\"10:51 - 10:58\" data-start=\"00:10:51.444\" data-end=\"00:10:58.083\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah they actually had a meet and beat all around,<\/span><br \/><span title=\"10:58 - 11:04\" data-start=\"00:10:58.120\" data-end=\"00:11:03.516\" data-spk=\"0\" data-label=\"Jason\">the you know revenue is up 22 percent.<\/span><br \/><span title=\"11:04 - 11:17\" data-start=\"00:11:03.600\" data-end=\"00:11:16.549\" data-spk=\"0\" data-label=\"Jason\">You know there\u2019s a bunch of different metrics at Shopify these days because they have like the recurring Revenue they have the attachment sales attachment sales were are particularly interesting in this is,<\/span><br \/><span title=\"11:17 - 11:23\" data-start=\"00:11:16.592\" data-end=\"00:11:23.177\" data-spk=\"0\" data-label=\"Jason\">how many of the various Shopify Services each Merchant uses so are they using shop pay are they using<\/span><br \/><span title=\"11:23 - 11:32\" data-start=\"00:11:23.028\" data-end=\"00:11:31.860\" data-spk=\"0\" data-label=\"Jason\">Shopify fulfillment the the POS system all these things in the the attachment rate went way up which is encouraging for Shopify<\/span><br \/><span title=\"11:32 - 11:43\" data-start=\"00:11:31.735\" data-end=\"00:11:42.521\" data-spk=\"0\" data-label=\"Jason\">and the Marquee number is probably total gmv going through their system and that was up by 11% so it was 46 billion dollars for the quarter,<\/span><br \/><span title=\"11:43 - 11:44\" data-start=\"00:11:42.593\" data-end=\"00:11:43.548\" data-spk=\"0\" data-label=\"Jason\">um<\/span><br \/><span title=\"11:44 - 11:53\" data-start=\"00:11:43.603\" data-end=\"00:11:53.319\" data-spk=\"0\" data-label=\"Jason\">and you know the Shopify is really been beaten up the last few quarters in and you know had a lot of down quarters and a lot of it was like,<\/span><br \/><span title=\"11:53 - 12:03\" data-start=\"00:11:53.325\" data-end=\"00:12:02.717\" data-spk=\"0\" data-label=\"Jason\">e-commerce got overhyped and Shopify overbuilt and now that reality setting in they\u2019re getting creamed and so they\u2019re the<\/span><br \/><span title=\"12:03 - 12:11\" data-start=\"00:12:02.645\" data-end=\"00:12:10.961\" data-spk=\"0\" data-label=\"Jason\">the guidance was pretty low and Shopify had a pretty solid quarter and sailed by it so I think their stock has had a nice little boost as a result of that.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[12:12]<\/small>\u00a0<span title=\"12:12 - 12:25\" data-start=\"00:12:12.170\" data-end=\"00:12:24.632\" data-spk=\"1\" data-label=\"Scot\">In shopify\u2019s coming out liar because they do this pre-market announcement which is kind of the new fashion because there\u2019s so many companies that do aftermarket that you don\u2019t get the analysts that you want on your call so they\u2019ve moved to kind of a morning,<\/span><br \/><span title=\"12:25 - 12:31\" data-start=\"00:12:24.687\" data-end=\"00:12:30.743\" data-spk=\"1\" data-label=\"Scot\">announcement so they did Thursday morning and then that set up Amazon it wouldn\u2019t be a Jason Scott show without.<\/span><\/p>\n<h2 id=\"chapter\">Marker 01<\/h2>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[12:31]<\/small>\u00a0<span title=\"12:31 - 12:44\" data-start=\"00:12:30.660\" data-end=\"00:12:43.525\" data-spk=\"0\" data-label=\"Jason\">Amazon news your margin is there opportunity.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[12:43]<\/small>\u00a0<span title=\"12:43 - 12:57\" data-start=\"00:12:43.225\" data-end=\"00:12:56.546\" data-spk=\"1\" data-label=\"Scot\">Well that other way the way I would characterize this one is a missing lower so from a Wall Street perspective they\u2019re always kind of thinking how did you do against our expectations for the current period and then how did you do for our forward-looking expectations so<\/span><br \/><span title=\"12:56 - 13:02\" data-start=\"00:12:56.475\" data-end=\"00:13:02.099\" data-spk=\"1\" data-label=\"Scot\">so Amazon missed current and then actually lowered kind of missed the future as well.<\/span><br \/><span title=\"13:02 - 13:17\" data-start=\"00:13:02.351\" data-end=\"00:13:17.332\" data-spk=\"1\" data-label=\"Scot\">Let\u2019s dig into it there\u2019s mostly mostly a lot of headwinds which does not bode well for an e-commerce or retail holiday here in the fourth quarter but let\u2019s dig into it and there are some there are some positives in here that will pick out<\/span><br \/><span title=\"13:17 - 13:25\" data-start=\"00:13:17.278\" data-end=\"00:13:25.095\" data-spk=\"1\" data-label=\"Scot\">so also as we record this the stock\u2019s down 10% which you know Amazon is one of the largest<\/span><br \/><span title=\"13:25 - 13:33\" data-start=\"00:13:25.018\" data-end=\"00:13:32.949\" data-spk=\"1\" data-label=\"Scot\">capitalized stocks out there at over a trillion dollars so 10% is a hundred billion dollars in so a lot of a lot of money sloshing around and it was.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[13:33]<\/small>\u00a0<span title=\"13:33 - 13:34\" data-start=\"00:13:32.649\" data-end=\"00:13:33.796\" data-spk=\"0\" data-label=\"Jason\">It\u2019s like two Twitter\u2019s.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[13:34]<\/small>\u00a0<span title=\"13:34 - 13:36\" data-start=\"00:13:33.929\" data-end=\"00:13:35.737\" data-spk=\"1\" data-label=\"Scot\">Yes yeah it is.<\/span><\/p>\n<p><small>[13:36]<\/small>\u00a0<span title=\"13:36 - 13:44\" data-start=\"00:13:35.948\" data-end=\"00:13:44.060\" data-spk=\"1\" data-label=\"Scot\">Good enough and if it\u2019s down to Twitter\u2019s today and it was down as much as 20 percent in after-hours trading so so really<\/span><br \/><span title=\"13:44 - 13:50\" data-start=\"00:13:43.952\" data-end=\"00:13:49.739\" data-spk=\"1\" data-label=\"Scot\">really kind of a tough report here the other caveat before we dig in is<\/span><br \/><span title=\"13:50 - 14:00\" data-start=\"00:13:49.643\" data-end=\"00:13:59.726\" data-spk=\"1\" data-label=\"Scot\">I don\u2019t know if most people track this because unless you went on an international trip or had some international business you would know but one theme we\u2019re going to talk a lot about is Europe so your<\/span><br \/><span title=\"14:00 - 14:03\" data-start=\"00:13:59.648\" data-end=\"00:14:02.784\" data-spk=\"1\" data-label=\"Scot\">how\u2019s the.<\/span><br \/><span title=\"14:03 - 14:14\" data-start=\"00:14:02.893\" data-end=\"00:14:13.991\" data-spk=\"1\" data-label=\"Scot\">Geopolitical issues with the Ukrainian situation there and then they have an energy problem because they get most of their energy from Russia so they\u2019re having energy,<\/span><br \/><span title=\"14:14 - 14:20\" data-start=\"00:14:14.022\" data-end=\"00:14:20.084\" data-spk=\"1\" data-label=\"Scot\">it also are suffering from similar inflation trends that we\u2019re seeing there\u2019s a worse because the energy is<\/span><br \/><span title=\"14:20 - 14:29\" data-start=\"00:14:19.965\" data-end=\"00:14:29.044\" data-spk=\"1\" data-label=\"Scot\">orders of magnitude worse than we see here in United States that has created a currency fluctuation very unusual so so it used to be that.<\/span><br \/><span title=\"14:29 - 14:38\" data-start=\"00:14:29.140\" data-end=\"00:14:37.739\" data-spk=\"1\" data-label=\"Scot\">You know dollar was worth euros worth of many dollars and now that is inverted or like parody there and the pound is these currencies are at.<\/span><br \/><span title=\"14:38 - 14:53\" data-start=\"00:14:37.836\" data-end=\"00:14:52.509\" data-spk=\"1\" data-label=\"Scot\">Multi-year multi-decade lows versus the dollars so the problem when you\u2019re like Amazon and you have a pretty big chunk of your Revenue coming from International entity like that when you compare your periods it creates a financial Exchange headwind.<\/span><br \/><span title=\"14:53 - 14:56\" data-start=\"00:14:52.606\" data-end=\"00:14:56.205\" data-spk=\"1\" data-label=\"Scot\">I will report all these numbers without that but it is<\/span><br \/><span title=\"14:56 - 15:04\" data-start=\"00:14:56.115\" data-end=\"00:15:03.848\" data-spk=\"1\" data-label=\"Scot\">created you know the absolute dollars of Revenue and whatnot are off even more due to that currency headwind that that\u2019s out there.<\/span><\/p>\n<p><small>[15:04]<\/small>\u00a0<span title=\"15:04 - 15:06\" data-start=\"00:15:04.011\" data-end=\"00:15:06.426\" data-spk=\"1\" data-label=\"Scot\">So let\u2019s look first it Revenue.<\/span><br \/><span title=\"15:07 - 15:17\" data-start=\"00:15:06.511\" data-end=\"00:15:17.044\" data-spk=\"1\" data-label=\"Scot\">Revenues came in at 120 7.1 billion Wall Street was expecting a hundred twenty seven point four billion so that point three billion was the myth that\u2019s three hundred million dollars that\u2019s.<\/span><br \/><span title=\"15:17 - 15:28\" data-start=\"00:15:17.171\" data-end=\"00:15:27.765\" data-spk=\"1\" data-label=\"Scot\">Into to that Ridge retailer that\u2019s pretty cataclysmic that\u2019s actually pretty small from a personal standpoint and you know I think if you looked at the financial exposure and whatnot it largely<\/span><br \/><span title=\"15:28 - 15:37\" data-start=\"00:15:27.657\" data-end=\"00:15:37.055\" data-spk=\"1\" data-label=\"Scot\">can be explained there the one of the bright spots will talk about is North America Revenue so this could actually bode well for listeners that are have almost<\/span><br \/><span title=\"15:37 - 15:40\" data-start=\"00:15:36.953\" data-end=\"00:15:40.011\" data-spk=\"1\" data-label=\"Scot\">just pure United States exposure<\/span><br \/><span title=\"15:40 - 15:53\" data-start=\"00:15:39.861\" data-end=\"00:15:53.351\" data-spk=\"1\" data-label=\"Scot\">the revenues were up 20 percent year over year which is pretty impressive in an acceleration from last Q which was 10% now they did have a this right Jason they had a prime day that that was that was an October 1.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[15:54]<\/small>\u00a0<span title=\"15:54 - 15:56\" data-start=\"00:15:53.556\" data-end=\"00:15:55.741\" data-spk=\"0\" data-label=\"Jason\">Yeah I think that\u2019s going to be in the queue for numbers.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[15:56]<\/small>\u00a0<span title=\"15:56 - 15:57\" data-start=\"00:15:55.509\" data-end=\"00:15:57.209\" data-spk=\"1\" data-label=\"Scot\">Yeah okay so that\u2019s without.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[15:57]<\/small>\u00a0<span title=\"15:57 - 16:00\" data-start=\"00:15:56.959\" data-end=\"00:16:00.087\" data-spk=\"0\" data-label=\"Jason\">And and we don\u2019t call it Prime day we call it early Prime axis.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[16:00]<\/small>\u00a0<span title=\"16:00 - 16:12\" data-start=\"00:15:59.787\" data-end=\"00:16:12.436\" data-spk=\"1\" data-label=\"Scot\">Yes the thing that we will not be called printing the artist previously known as permanent so so that was good and then you tracked e-commerce data closer than I do that that\u2019s got to be.<\/span><br \/><span title=\"16:13 - 16:16\" data-start=\"00:16:12.893\" data-end=\"00:16:16.378\" data-spk=\"1\" data-label=\"Scot\">Pretty significantly above the Census Bureau data right.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[16:16]<\/small>\u00a0<span title=\"16:16 - 16:26\" data-start=\"00:16:16.456\" data-end=\"00:16:25.992\" data-spk=\"0\" data-label=\"Jason\">It\u2019s it slightly above that so we don\u2019t have Q3 e-commerce data yet so we only have that non store.<\/span><br \/><span title=\"16:26 - 16:37\" data-start=\"00:16:26.203\" data-end=\"00:16:37.103\" data-spk=\"0\" data-label=\"Jason\">Sales data and it\u2019s it\u2019s in line with an OnStar sales data but the e-commerce data is usually a little lower so next month will get that and I do have a feeling that.<\/span><br \/><span title=\"16:37 - 16:42\" data-start=\"00:16:37.452\" data-end=\"00:16:41.610\" data-spk=\"0\" data-label=\"Jason\">Amazon\u2019s Q3 is going to outperform the the industry\u2019s e-commerce.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[16:42]<\/small>\u00a0<span title=\"16:42 - 16:46\" data-start=\"00:16:41.845\" data-end=\"00:16:46.045\" data-spk=\"1\" data-label=\"Scot\">Yep and then where is retail where did retail end.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[16:46]<\/small>\u00a0<span title=\"16:46 - 16:55\" data-start=\"00:16:46.358\" data-end=\"00:16:54.836\" data-spk=\"0\" data-label=\"Jason\">Pretty high also the this I\u2019m going to buy time while II.<\/span><br \/><span title=\"16:55 - 17:04\" data-start=\"00:16:55.305\" data-end=\"00:17:03.813\" data-spk=\"0\" data-label=\"Jason\">Pull up my number but this is kind of the so year-to-date retails up 9.1%.<\/span><br \/><span title=\"17:05 - 17:10\" data-start=\"00:17:04.643\" data-end=\"00:17:09.811\" data-spk=\"0\" data-label=\"Jason\">So I didn\u2019t I didn\u2019t do a Q3 breakout but.<\/span><br \/><span title=\"17:10 - 17:19\" data-start=\"00:17:10.111\" data-end=\"00:17:19.371\" data-spk=\"0\" data-label=\"Jason\">Overall spending in North America by consumers has remain robust which like has shown up in the Amazon earnings and shown up in the.<\/span><br \/><span title=\"17:19 - 17:26\" data-start=\"00:17:19.450\" data-end=\"00:17:25.711\" data-spk=\"0\" data-label=\"Jason\">The Shopify earnings which is you know I think somewhat surprised a lot of people because with all the<\/span><br \/><span title=\"17:26 - 17:35\" data-start=\"00:17:25.597\" data-end=\"00:17:34.784\" data-spk=\"0\" data-label=\"Jason\">the economic news people are kind of expecting that consumers would tighten their belt and it seems like they\u2019ve changed what they spend on but they\u2019re continuing to spend so far.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[17:34]<\/small>\u00a0<span title=\"17:34 - 17:40\" data-start=\"00:17:34.484\" data-end=\"00:17:40.192\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah so that\u2019s that\u2019s right spot and then to kind of pair that in<\/span><br \/><span title=\"17:40 - 17:53\" data-start=\"00:17:40.025\" data-end=\"00:17:53.292\" data-spk=\"1\" data-label=\"Scot\">with a dark spot International revenues were down 12 percent and that\u2019s when you take out the impact of foreign currency so Europe is definitely in what I would call an e-commerce \/ retail recession you know<\/span><br \/><span title=\"17:53 - 18:06\" data-start=\"00:17:53.142\" data-end=\"00:18:06.176\" data-spk=\"1\" data-label=\"Scot\">have a lot of empathy for folks their power bills are just surging and they\u2019re having to decide you know do I do I pay my for my heat or do I buy a pair of shoes online or whatever it is so so I think we\u2019re going to have really rough<\/span><br \/><span title=\"18:06 - 18:21\" data-start=\"00:18:06.128\" data-end=\"00:18:20.958\" data-spk=\"1\" data-label=\"Scot\">q4q on here for anyone that has exposure to Europe now Amazon to their credit did manage their expenses and beat on the bottom line here so it was less they were able to kind of take this downward Trend and manage their expenses and so it wasn\u2019t a.<\/span><br \/><span title=\"18:21 - 18:29\" data-start=\"00:18:21.055\" data-end=\"00:18:29.040\" data-spk=\"1\" data-label=\"Scot\">Double A Miss Revenue Miss profit so it was a Miss on Revenue lower Revenue than expected but then also they kind of made it up<\/span><br \/><span title=\"18:29 - 18:34\" data-start=\"00:18:28.999\" data-end=\"00:18:34.136\" data-spk=\"1\" data-label=\"Scot\">Bob with efficiencies that being said you know it\u2019s a<\/span><br \/><span title=\"18:34 - 18:48\" data-start=\"00:18:34.040\" data-end=\"00:18:48.029\" data-spk=\"1\" data-label=\"Scot\">this is pretty interesting so so FedEx is one of the first companies kind of say hey we think we\u2019re heading into a global recession then everyone else said we don\u2019t see it and then so this is another data point that kind of says yeah there\u2019s something really going on and we\u2019re really starting to see it in the data here<\/span><br \/><span title=\"18:48 - 18:50\" data-start=\"00:18:48.011\" data-end=\"00:18:50.282\" data-spk=\"1\" data-label=\"Scot\">so<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[18:50]<\/small>\u00a0<span title=\"18:50 - 19:00\" data-start=\"00:18:49.982\" data-end=\"00:18:59.969\" data-spk=\"0\" data-label=\"Jason\">And you know there was a Jeff Bezos tweet like a week or two ago that was like kind of his own POV and I think it was batten down the hatches.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[19:00]<\/small>\u00a0<span title=\"19:00 - 19:09\" data-start=\"00:18:59.669\" data-end=\"00:19:09.295\" data-spk=\"1\" data-label=\"Scot\">Yeah yeah so you\u2019d imagine being on the board he sees the other thing that\u2019s interesting with these big companies as they get a fair amount of time to do this you know so we\u2019re.<\/span><br \/><span title=\"19:09 - 19:17\" data-start=\"00:19:09.380\" data-end=\"00:19:16.782\" data-spk=\"1\" data-label=\"Scot\">You know they\u2019ve got another month of data that they\u2019re looking at so that we\u2019ll talk about the fourth quarter so there\u2019s<\/span><br \/><span title=\"19:17 - 19:22\" data-start=\"00:19:16.657\" data-end=\"00:19:22.142\" data-spk=\"1\" data-label=\"Scot\">reading the body language it feels like it\u2019s getting worse so we\u2019ll talk about that<\/span><br \/><span title=\"19:22 - 19:34\" data-start=\"00:19:21.987\" data-end=\"00:19:33.980\" data-spk=\"1\" data-label=\"Scot\">but on the bottom line so all that was the top line and kind of the interior parts of Revenue let\u2019s look at the profitability operating income came in at 2 .5 3 billion versus 2.94 billion so that\u2019s a<\/span><br \/><span title=\"19:34 - 19:42\" data-start=\"00:19:33.770\" data-end=\"00:19:41.594\" data-spk=\"1\" data-label=\"Scot\">point for billions of 400 million which again isn\u2019t isn\u2019t a massive number but percentage-wise it\u2019s about a 15 to 20 percent Miss so that.<\/span><\/p>\n<p><small>[19:42]<\/small>\u00a0<span title=\"19:42 - 19:55\" data-start=\"00:19:41.865\" data-end=\"00:19:55.144\" data-spk=\"1\" data-label=\"Scot\">Really big percentage Miss on the bottom line of expectations so yeah so that\u2019s the you know it was a Miss on the top line Miss on the bottom line so so overall Miss and then we\u2019ll talk about the lower<\/span><br \/><span title=\"19:55 - 20:08\" data-start=\"00:19:54.982\" data-end=\"00:20:07.961\" data-spk=\"1\" data-label=\"Scot\">I did see a couple interesting details the two I picked out that I\u2019ll kick it over to you Jason third-party unit so this is a metric that\u2019s near and dear to my heart hit a new high of 58 percent of units so one of the things I<\/span><br \/><span title=\"20:08 - 20:13\" data-start=\"00:20:07.800\" data-end=\"00:20:13.340\" data-spk=\"1\" data-label=\"Scot\">I in my mind that Amazon has a sliver that they can pull and send more<\/span><br \/><span title=\"20:13 - 20:23\" data-start=\"00:20:13.166\" data-end=\"00:20:23.140\" data-spk=\"1\" data-label=\"Scot\">dual s1p and more 3p if they want to drive profit over Revenue so that there\u2019s a trade-off there higher they have a high margin high margin<\/span><br \/><span title=\"20:23 - 20:29\" data-start=\"00:20:23.039\" data-end=\"00:20:28.945\" data-spk=\"1\" data-label=\"Scot\">low Revenue high margin business High Revenue low margin business and they can kind of like dial between those and it feels like that<\/span><br \/><span title=\"20:29 - 20:35\" data-start=\"00:20:28.813\" data-end=\"00:20:35.243\" data-spk=\"1\" data-label=\"Scot\">pulled that dial over towards the 3p side that could also be supply chain issues there\u2019s a million things that go on there<\/span><br \/><span title=\"20:35 - 20:45\" data-start=\"00:20:35.063\" data-end=\"00:20:45.236\" data-spk=\"1\" data-label=\"Scot\">the thing that was interesting is Amazon goes through these what I would call invest in Harvest cycles and during covid they invested a major amount they almost doubled their fulfillment for,<\/span><br \/><span title=\"20:45 - 20:56\" data-start=\"00:20:45.284\" data-end=\"00:20:56.292\" data-spk=\"1\" data-label=\"Scot\">and today they signaled the Wall Street in Q2 that they were going to go through kind of a harvesting phase where they were going to stop adding capacity in fact they\u2019ve actually.<\/span><\/p>\n<p><small>[20:56]<\/small>\u00a0<span title=\"20:56 - 21:03\" data-start=\"00:20:56.419\" data-end=\"00:21:02.620\" data-spk=\"1\" data-label=\"Scot\">You know they\u2019ve shut down somewhere houses they sold some so that they\u2019ve actually started this this kind of,<\/span><br \/><span title=\"21:03 - 21:14\" data-start=\"00:21:02.693\" data-end=\"00:21:13.845\" data-spk=\"1\" data-label=\"Scot\">harvesting mode from all that investment where that\u2019s reflected is in the symmetric they release called shipping expenses which they measure as a percentage of online store revenues it was 37.2%<\/span><br \/><span title=\"21:14 - 21:28\" data-start=\"00:21:13.677\" data-end=\"00:21:28.026\" data-spk=\"1\" data-label=\"Scot\">and that\u2019s an improvement this quarter over last quarter\u2019s 37.9% so that\u2019s pretty impressive especially you know the sales grew through there so so to be able to grow the 20% we\u2019re talking about and reduce expenses is very impressive<\/span><br \/><span title=\"21:28 - 21:38\" data-start=\"00:21:27.828\" data-end=\"00:21:37.593\" data-spk=\"1\" data-label=\"Scot\">on the call they said that they were able to squeeze out a billion dollars in operation Improvement in the quarter and that they were pretty excited about that but they actually felt like they had missed their<\/span><br \/><span title=\"21:38 - 21:50\" data-start=\"00:21:37.557\" data-end=\"00:21:50.182\" data-spk=\"1\" data-label=\"Scot\">tear internal goal by 500 so we\u2019re going to do 1.5 billion and they came out with a billion so I suspect we\u2019ll see some of those things come in the fourth quarter they did say that that thing that we will not call Prime day<\/span><br \/><span title=\"21:50 - 21:54\" data-start=\"00:21:50.116\" data-end=\"00:21:53.667\" data-spk=\"1\" data-label=\"Scot\">cause I was a little bit of a challenge because you know<\/span><br \/><span title=\"21:54 - 22:05\" data-start=\"00:21:53.541\" data-end=\"00:22:04.880\" data-spk=\"1\" data-label=\"Scot\">they are so you\u2019re sitting there and you\u2019re like putting the screws to things and you\u2019re really figuring out and then suddenly you have this day where you have a record number of orders come through and it that makes it hard to do so they that was a speed bump in that,<\/span><br \/><span title=\"22:05 - 22:11\" data-start=\"00:22:04.941\" data-end=\"00:22:10.613\" data-spk=\"1\" data-label=\"Scot\">any other little tidbits you saw in the big picture before we dive into some of the other pieces.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[22:11]<\/small>\u00a0<span title=\"22:11 - 22:23\" data-start=\"00:22:10.745\" data-end=\"00:22:22.571\" data-spk=\"0\" data-label=\"Jason\">Yeah mine we\u2019re probably a little more frivolous frivolous than yours but we always talk about you know how Amazon hates the profitability metric and they you know they talk about Gap profitability not being.<\/span><br \/><span title=\"22:23 - 22:36\" data-start=\"00:22:22.890\" data-end=\"00:22:35.857\" data-spk=\"0\" data-label=\"Jason\">Like that relevant and how much more that Jeff Bezos likes free cash flow well another example of that hitting home for me was in this earnings call they kind of talked about the last couple quarters of,<\/span><br \/><span title=\"22:36 - 22:40\" data-start=\"00:22:35.923\" data-end=\"00:22:40.352\" data-spk=\"0\" data-label=\"Jason\">of their profitability and what a huge impact,<\/span><br \/><span title=\"22:40 - 22:51\" data-start=\"00:22:40.418\" data-end=\"00:22:51.390\" data-spk=\"0\" data-label=\"Jason\">the value of the rivi on stock was on it and it like literally was like the most influential thing in whether you know they they were profitable or not,<\/span><br \/><span title=\"22:51 - 23:00\" data-start=\"00:22:51.451\" data-end=\"00:22:59.893\" data-spk=\"0\" data-label=\"Jason\">and so you know rivi on had a better quarter this time than last quarter and so that that materially changed Amazon\u2019s profitability.<\/span><br \/><span title=\"23:00 - 23:08\" data-start=\"00:23:00.206\" data-end=\"00:23:08.324\" data-spk=\"0\" data-label=\"Jason\">So it\u2019s just it\u2019s funny because they\u2019re they\u2019re not solely owned by Amazon but the Amazon is a major investor like that that\u2019s a.<\/span><br \/><span title=\"23:09 - 23:18\" data-start=\"00:23:08.528\" data-end=\"00:23:17.854\" data-spk=\"0\" data-label=\"Jason\">Kind of X Factor and their earnings that may have been previously obvious to you but then the way more important one.<\/span><br \/><span title=\"23:18 - 23:31\" data-start=\"00:23:18.119\" data-end=\"00:23:30.768\" data-spk=\"0\" data-label=\"Jason\">So you know the their first season of rings of power wrapped up two weeks ago and everyone in the entertainment industry has noted that they really haven\u2019t come out and bragged about any audience measure metrics from that show.<\/span><br \/><span title=\"23:31 - 23:40\" data-start=\"00:23:30.864\" data-end=\"00:23:40.034\" data-spk=\"0\" data-label=\"Jason\">And we know Amazon likes to brag about its winds so the assumption is that it was a little underwhelming from a performance standpoint and then in this earnings.<\/span><\/p>\n<p><small>[23:40]<\/small>\u00a0<span title=\"23:40 - 23:45\" data-start=\"00:23:40.371\" data-end=\"00:23:45.328\" data-spk=\"0\" data-label=\"Jason\">They reference that they got nearly a hundred million viewers for the show<\/span><br \/><span title=\"23:45 - 23:51\" data-start=\"00:23:45.274\" data-end=\"00:23:51.289\" data-spk=\"0\" data-label=\"Jason\">so that probably means they got less than 90 million viewers or they would have just said 100 million but well,<\/span><br \/><span title=\"23:51 - 23:56\" data-start=\"00:23:51.289\" data-end=\"00:23:56.300\" data-spk=\"0\" data-label=\"Jason\">generously say they got a hundred million views eight episodes of the show<\/span><br \/><span title=\"23:56 - 24:08\" data-start=\"00:23:56.198\" data-end=\"00:24:08.090\" data-spk=\"0\" data-label=\"Jason\">that means they averaged about 12.5 million viewers per episode and to put that in perspective HBO has said they got to north of 29 million.<\/span><br \/><span title=\"24:08 - 24:12\" data-start=\"00:24:08.211\" data-end=\"00:24:12.459\" data-spk=\"0\" data-label=\"Jason\">Views per episode of House of the Dragon so.<\/span><br \/><span title=\"24:13 - 24:24\" data-start=\"00:24:12.874\" data-end=\"00:24:23.960\" data-spk=\"0\" data-label=\"Jason\">You know compared to a normal TV show those are all good numbers but these are you know the world\u2019s most expensive TV show so it does seem in this first season that HBO is better at getting an audience for their.<\/span><br \/><span title=\"24:24 - 24:29\" data-start=\"00:24:24.147\" data-end=\"00:24:28.653\" data-spk=\"0\" data-label=\"Jason\">Their Blockbuster TV shows then then Amazon is so far.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[24:29]<\/small>\u00a0<span title=\"24:29 - 24:40\" data-start=\"00:24:28.972\" data-end=\"00:24:40.160\" data-spk=\"1\" data-label=\"Scot\">I\u2019ve heard better I haven\u2019t watched either I\u2019m saving them for a holiday binge but I\u2019ve heard more positive Buzz of from House of dragon than the rings of power but I don\u2019t know.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[24:40]<\/small>\u00a0<span title=\"24:40 - 24:49\" data-start=\"00:24:39.957\" data-end=\"00:24:48.543\" data-spk=\"0\" data-label=\"Jason\">Yeah I mean I think both are totally watchable I enjoyed both there\u2019s this weird don\u2019t you know there\u2019s people that have such a love for the the.<\/span><br \/><span title=\"24:49 - 24:59\" data-start=\"00:24:49.295\" data-end=\"00:24:59.143\" data-spk=\"0\" data-label=\"Jason\">Both Worlds that you know the TV shows fall fall short of people\u2019s expectations and so I like I have a feeling for like huge.<\/span><br \/><span title=\"24:59 - 25:09\" data-start=\"00:24:59.294\" data-end=\"00:25:08.830\" data-spk=\"0\" data-label=\"Jason\">Um you know Cannon lovers of Lord of the Rings that like you know they might have been a little extra disappointed but if you kind of just come into it cold and say hey is this a good.<\/span><br \/><span title=\"25:09 - 25:14\" data-start=\"00:25:09.022\" data-end=\"00:25:13.571\" data-spk=\"0\" data-label=\"Jason\">Piece of of fantasy fiction and is entertaining to watch I thought it was pretty good.<\/span><\/p>\n<p><small>[25:16]<\/small>\u00a0<span title=\"25:16 - 25:28\" data-start=\"00:25:15.518\" data-end=\"00:25:28.305\" data-spk=\"0\" data-label=\"Jason\">And then the last thing and you alluded this little bit the early Prime access is not in the Q3 numbers but they do reference it in the earnings and.<\/span><br \/><span title=\"25:29 - 25:36\" data-start=\"00:25:28.672\" data-end=\"00:25:35.774\" data-spk=\"0\" data-label=\"Jason\">It was a a successful event like it\u2019s very clear that it did not.<\/span><br \/><span title=\"25:36 - 25:45\" data-start=\"00:25:36.376\" data-end=\"00:25:44.800\" data-spk=\"0\" data-label=\"Jason\">Come close to approaching the level of success that Prime day typically has or even that the prime day in October a couple years ago had.<\/span><br \/><span title=\"25:45 - 25:52\" data-start=\"00:25:44.969\" data-end=\"00:25:52.269\" data-spk=\"0\" data-label=\"Jason\">Um and you know so there\u2019s been a lot made a lot of media has written about oh it\u2019s a failure because it\u2019s not another huge.<\/span><br \/><span title=\"25:53 - 25:59\" data-start=\"00:25:52.516\" data-end=\"00:25:59.071\" data-spk=\"0\" data-label=\"Jason\">Spike like Prime day I\u2019m not actually sure that was the bar or the goal<\/span><br \/><span title=\"25:59 - 26:11\" data-start=\"00:25:58.934\" data-end=\"00:26:11.138\" data-spk=\"0\" data-label=\"Jason\">you know Amazon like every other retailer has a lot of imperfect inventory at the moment and I\u2019ll and it seems like they got a chance to sell through a lot of that at this event and so like you know I think.<\/span><br \/><span title=\"26:11 - 26:17\" data-start=\"00:26:11.487\" data-end=\"00:26:17.201\" data-spk=\"0\" data-label=\"Jason\">How you judge that event has a lot to do with what you think the success criteria of the event was but<\/span><br \/><span title=\"26:17 - 26:30\" data-start=\"00:26:17.147\" data-end=\"00:26:30.367\" data-spk=\"0\" data-label=\"Jason\">that that\u2019s another sort of tidbit like they certainly didn\u2019t come at you know if it had been a home run it would have been one of the top Six Bullets at the at the beginning of their their earnings press release and it was not.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[26:30]<\/small>\u00a0<span title=\"26:30 - 26:41\" data-start=\"00:26:30.337\" data-end=\"00:26:40.504\" data-spk=\"1\" data-label=\"Scot\">Yeah this this kind of goes to the changing consumer Behavior another thing that didn\u2019t chat with you before we prepped his again I watch a lot of CNBC.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[26:40]<\/small>\u00a0<span title=\"26:40 - 26:43\" data-start=\"00:26:40.216\" data-end=\"00:26:43.196\" data-spk=\"0\" data-label=\"Jason\">Audience members are going to be surprised to find out that we ever prepped.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[26:43]<\/small>\u00a0<span title=\"26:43 - 26:52\" data-start=\"00:26:42.896\" data-end=\"00:26:52.228\" data-spk=\"1\" data-label=\"Scot\">Are very light prep the both CEO of hurts United and of think it was American or Delta Airlines<\/span><br \/><span title=\"26:52 - 27:06\" data-start=\"00:26:52.078\" data-end=\"00:27:05.592\" data-spk=\"1\" data-label=\"Scot\">they\u2019ll talk about these new patterns they\u2019re seeing and travel wear and then there\u2019s not a great name for it yet but what\u2019s happening is people will go on a personal or a business trip and they\u2019re staying longer and because so many people are<\/span><br \/><span title=\"27:05 - 27:08\" data-start=\"00:27:05.436\" data-end=\"00:27:08.338\" data-spk=\"1\" data-label=\"Scot\">working working<\/span><br \/><span title=\"27:08 - 27:27\" data-start=\"00:27:08.170\" data-end=\"00:27:27.188\" data-spk=\"1\" data-label=\"Scot\">you know remote they\u2019ll go and do they\u2019ll go on like let\u2019s say you had a business trip somewhere you and your significant other could go to that and then have fun and then stay three more days into the next week so what used to be like little snack size trips like two or three-day trips both for personal and business have turned into these six eight ten day<\/span><br \/><span title=\"27:27 - 27:28\" data-start=\"00:27:27.045\" data-end=\"00:27:27.940\" data-spk=\"1\" data-label=\"Scot\">type trips.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[27:29]<\/small>\u00a0<span title=\"27:29 - 27:33\" data-start=\"00:27:28.541\" data-end=\"00:27:32.975\" data-spk=\"0\" data-label=\"Jason\">Yeah it\u2019s work Leisure I\u2019m naming it but yeah.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[27:32]<\/small>\u00a0<span title=\"27:32 - 27:40\" data-start=\"00:27:31.539\" data-end=\"00:27:39.777\" data-spk=\"1\" data-label=\"Scot\">Yeah there you go so you know so then people are spending a lot more money on that which I think could be part of you know<\/span><br \/><span title=\"27:40 - 27:50\" data-start=\"00:27:39.694\" data-end=\"00:27:50.359\" data-spk=\"1\" data-label=\"Scot\">people only have so big a wallet and whatnot so yeah so it\u2019s gonna be interesting to see how this holiday sets of it\u2019s going to there\u2019s so many changing behaviors I<\/span><br \/><span title=\"27:50 - 27:54\" data-start=\"00:27:50.324\" data-end=\"00:27:53.845\" data-spk=\"1\" data-label=\"Scot\">it\u2019s going to be a lot to pick out of this one.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[27:54]<\/small>\u00a0<span title=\"27:54 - 27:56\" data-start=\"00:27:53.545\" data-end=\"00:27:56.332\" data-spk=\"0\" data-label=\"Jason\">Yeah no for sure I do think.<\/span><br \/><span title=\"27:57 - 28:07\" data-start=\"00:27:56.501\" data-end=\"00:28:06.842\" data-spk=\"0\" data-label=\"Jason\">Again you know people are talking about all these economic headwinds you ordinarily that slows consumer spending way down so far we haven\u2019t in North America seeing,<\/span><br \/><span title=\"28:07 - 28:13\" data-start=\"00:28:06.897\" data-end=\"00:28:13.464\" data-spk=\"0\" data-label=\"Jason\">consumer spending slowdown but what they\u2019ve spent on has toy changed a your point it is still more.<\/span><br \/><span title=\"28:14 - 28:18\" data-start=\"00:28:13.603\" data-end=\"00:28:18.230\" data-spk=\"0\" data-label=\"Jason\">Sort of like experiences and pent-up demand for things that people weren\u2019t able to do,<\/span><br \/><span title=\"28:18 - 28:33\" data-start=\"00:28:18.242\" data-end=\"00:28:32.928\" data-spk=\"0\" data-label=\"Jason\">during the height of the pandemic and it is you know they\u2019re spending more of their wallet on on needs instead of wants as the needs have gotten more expensive due to inflation so write to me the most common story we\u2019re hearing is.<\/span><br \/><span title=\"28:33 - 28:42\" data-start=\"00:28:33.060\" data-end=\"00:28:41.605\" data-spk=\"0\" data-label=\"Jason\">Revenue looks pretty strong but profitability really sucks because we\u2019re we\u2019re selling the wrong stuff and we don\u2019t have enough of the right stuff in stock.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[28:42]<\/small>\u00a0<span title=\"28:42 - 28:48\" data-start=\"00:28:42.471\" data-end=\"00:28:48.473\" data-spk=\"1\" data-label=\"Scot\">Yeah nursing will you dug into the AWS and adds what did you see there.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[28:49]<\/small>\u00a0<span title=\"28:49 - 28:58\" data-start=\"00:28:48.684\" data-end=\"00:28:58.424\" data-spk=\"0\" data-label=\"Jason\">Yeah well you you mentioned up front that the stock the Amazon stock really took a hit after the earnings and it feels like that was two things.<\/span><br \/><span title=\"28:59 - 29:04\" data-start=\"00:28:58.641\" data-end=\"00:29:03.796\" data-spk=\"0\" data-label=\"Jason\">Their guidance that we\u2019ll talk about in a minute but also.<\/span><br \/><span title=\"29:04 - 29:14\" data-start=\"00:29:03.881\" data-end=\"00:29:13.988\" data-spk=\"0\" data-label=\"Jason\">I think the street was really spooked by the kind of slowing rate of growth of AWS you know for a long time a device has been the crown jewel of Amazon.<\/span><br \/><span title=\"29:14 - 29:21\" data-start=\"00:29:14.078\" data-end=\"00:29:20.922\" data-spk=\"0\" data-label=\"Jason\">In terms of you know a big Revenue number that\u2019s growing super fast and is wildly profitable,<\/span><br \/><span title=\"29:21 - 29:32\" data-start=\"00:29:20.995\" data-end=\"00:29:31.606\" data-spk=\"0\" data-label=\"Jason\">so AWS sales for the quarter where twenty point five billion which is a big number that\u2019s up 27 percent or 20 percent of you adjust for currency which again.<\/span><br \/><span title=\"29:32 - 29:32\" data-start=\"00:29:31.733\" data-end=\"00:29:32.291\" data-spk=\"0\" data-label=\"Jason\">Like.<\/span><br \/><span title=\"29:33 - 29:42\" data-start=\"00:29:32.532\" data-end=\"00:29:42.290\" data-spk=\"0\" data-label=\"Jason\">In most cases you go to someone and say hey you\u2019ve got a highly profitable twenty billion dollar quarter business in a grew by 27 percent this year from last year how do you feel about that,<\/span><br \/><span title=\"29:42 - 29:48\" data-start=\"00:29:42.357\" data-end=\"00:29:47.981\" data-spk=\"0\" data-label=\"Jason\">you feel pretty good but wall Street\u2019s expectations were that they would grow by more than 32 percent.<\/span><br \/><span title=\"29:48 - 29:58\" data-start=\"00:29:48.114\" data-end=\"00:29:57.950\" data-spk=\"0\" data-label=\"Jason\">And so it was like a significant Miss and if you know you look at the recent history of growth of AWS I mean you go back to 2021 it was.<\/span><br \/><span title=\"29:58 - 30:10\" data-start=\"00:29:58.095\" data-end=\"00:30:10.154\" data-spk=\"0\" data-label=\"Jason\">Thirty-seven percent growth 39 percent growth 40% growth 3733 and now 28 this is the first time it\u2019s dropped into the 20s and so I think there\u2019s a real fear on the part of investors that like.<\/span><\/p>\n<p><small>[30:11]<\/small>\u00a0<span title=\"30:11 - 30:20\" data-start=\"00:30:10.527\" data-end=\"00:30:19.967\" data-spk=\"0\" data-label=\"Jason\">Is the law of large numbers finally starting to catch up with this business and do you know do investors have to reset expectations about.<\/span><br \/><span title=\"30:20 - 30:23\" data-start=\"00:30:20.190\" data-end=\"00:30:23.489\" data-spk=\"0\" data-label=\"Jason\">What a WS can contribute to the pot going forward.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[30:25]<\/small>\u00a0<span title=\"30:25 - 30:32\" data-start=\"00:30:24.697\" data-end=\"00:30:31.805\" data-spk=\"1\" data-label=\"Scot\">You lot of people have been predicting a slow down there because of the larger law of large numbers but it\u2019s always sad when it happens.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[30:32]<\/small>\u00a0<span title=\"30:32 - 30:39\" data-start=\"00:30:31.703\" data-end=\"00:30:38.908\" data-spk=\"0\" data-label=\"Jason\">Yeah yeah and I don\u2019t know what the answer is because I\u2019m on one hand it seems totally intuitive that it would slow down it\u2019s such a big business.<\/span><br \/><span title=\"30:39 - 30:48\" data-start=\"00:30:39.197\" data-end=\"00:30:48.402\" data-spk=\"0\" data-label=\"Jason\">That there is a strong argument that as much money as that generates it is shocking what a small percentage of the world\u2019s compute is.<\/span><br \/><span title=\"30:49 - 30:54\" data-start=\"00:30:49.010\" data-end=\"00:30:53.594\" data-spk=\"0\" data-label=\"Jason\">Cloud still and so it doesn\u2019t there it\u2019s easy to craft an argument.<\/span><br \/><span title=\"30:54 - 31:02\" data-start=\"00:30:53.799\" data-end=\"00:31:01.598\" data-spk=\"0\" data-label=\"Jason\">That we\u2019re still in the first inning of the world migrating to the cloud and so a hypothesis is not that like.<\/span><br \/><span title=\"31:02 - 31:16\" data-start=\"00:31:02.043\" data-end=\"00:31:15.701\" data-spk=\"0\" data-label=\"Jason\">The fast run rate for these cloud services is over but that businesses spending to move to the cloud has slowed down because of the economy right and that you know as as.<\/span><br \/><span title=\"31:16 - 31:28\" data-start=\"00:31:15.816\" data-end=\"00:31:27.557\" data-spk=\"0\" data-label=\"Jason\">The there\u2019s more economic dark clouds you know Amazon has certainly cut back and and tried to contain cost every other company in the world is doing that and often that means,<\/span><br \/><span title=\"31:28 - 31:35\" data-start=\"00:31:27.618\" data-end=\"00:31:34.690\" data-spk=\"0\" data-label=\"Jason\">that migration to the cloud project that they were planning you know has to take a backseat so so some of that could be in there as well.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[31:35]<\/small>\u00a0<span title=\"31:35 - 31:37\" data-start=\"00:31:35.333\" data-end=\"00:31:37.370\" data-spk=\"1\" data-label=\"Scot\">Yeah and I saw.<\/span><br \/><span title=\"31:37 - 31:49\" data-start=\"00:31:37.479\" data-end=\"00:31:49.064\" data-spk=\"1\" data-label=\"Scot\">In the called excited energy cost so AWS also had some pressure on the bottom line and they cited energy cost and then I got to imagine this European recession you know the a lot of the<\/span><br \/><span title=\"31:49 - 31:55\" data-start=\"00:31:48.908\" data-end=\"00:31:55.481\" data-spk=\"1\" data-label=\"Scot\">the energy around a WS comes from startups and startup formation as always.<\/span><br \/><span title=\"31:56 - 32:05\" data-start=\"00:31:55.728\" data-end=\"00:32:05.463\" data-spk=\"1\" data-label=\"Scot\">Low during recessionary period step yes so if we do get a global recession it\u2019s going to be under pressure but I think the long-term addressable market for it\u2019s just massive so we\u2019ll see.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[32:06]<\/small>\u00a0<span title=\"32:06 - 32:14\" data-start=\"00:32:06.304\" data-end=\"00:32:13.527\" data-spk=\"0\" data-label=\"Jason\">Exactly but the good news for Amazon is they secretly have a better business than in the US<\/span><br \/><span title=\"32:13 - 32:26\" data-start=\"00:32:13.407\" data-end=\"00:32:25.539\" data-spk=\"0\" data-label=\"Jason\">which which is the bloody ads business right and so we\u2019ve talked about this for a couple quarters you know this used to be buried and other that you know a couple of quarters ago they had to disclose it for the first time.<\/span><br \/><span title=\"32:26 - 32:30\" data-start=\"00:32:25.671\" data-end=\"00:32:29.799\" data-spk=\"0\" data-label=\"Jason\">Um and you know so it was another good quarter.<\/span><br \/><span title=\"32:30 - 32:37\" data-start=\"00:32:29.950\" data-end=\"00:32:36.680\" data-spk=\"0\" data-label=\"Jason\">For the ads business it grew 25% 30% of you adjust for currency.<\/span><br \/><span title=\"32:37 - 32:41\" data-start=\"00:32:36.812\" data-end=\"00:32:41.469\" data-spk=\"0\" data-label=\"Jason\">So they sold 9.5 billion dollars worth of ads this quarter.<\/span><br \/><span title=\"32:42 - 32:54\" data-start=\"00:32:41.565\" data-end=\"00:32:54.208\" data-spk=\"0\" data-label=\"Jason\">Which is not as big as a WS but the margins for ads are way better than the margins for AWS because you mentioned you know the cost of goods for an ad is essentially zero.<\/span><br \/><span title=\"32:54 - 33:01\" data-start=\"00:32:54.305\" data-end=\"00:33:01.431\" data-spk=\"0\" data-label=\"Jason\">But there\u2019s very expensive electricity required for each unit of compute that a WS cells.<\/span><br \/><span title=\"33:02 - 33:11\" data-start=\"00:33:01.540\" data-end=\"00:33:10.547\" data-spk=\"0\" data-label=\"Jason\">So you add up the last four quarters of the ads business and it\u2019s now a 36 billion dollar business.<\/span><\/p>\n<p><small>[33:11]<\/small>\u00a0<span title=\"33:11 - 33:23\" data-start=\"00:33:10.896\" data-end=\"00:33:23.130\" data-spk=\"0\" data-label=\"Jason\">Which is another remarkable business I\u2019ve done the math of a foreign of you kind of you know impute income from from AWS and ads ads has already surpassed AWS in terms of total.<\/span><br \/><span title=\"33:23 - 33:26\" data-start=\"00:33:23.431\" data-end=\"00:33:26.038\" data-spk=\"0\" data-label=\"Jason\">Income contribution.<\/span><br \/><span title=\"33:26 - 33:38\" data-start=\"00:33:26.123\" data-end=\"00:33:37.708\" data-spk=\"0\" data-label=\"Jason\">One slight wrinkle for our listeners in the world of retail and commerce right now like one of the top topics that keeps coming up over and over again as retail media networks every,<\/span><br \/><span title=\"33:38 - 33:46\" data-start=\"00:33:37.768\" data-end=\"00:33:46.108\" data-spk=\"0\" data-label=\"Jason\">every retailer has seen this Amazon business and they\u2019re launching their own version of it call the retail media Network and investing heavily in it.<\/span><br \/><span title=\"33:46 - 33:55\" data-start=\"00:33:46.241\" data-end=\"00:33:55.344\" data-spk=\"0\" data-label=\"Jason\">And every brand is struggling with how to deal with all these retail media networks and if they\u2019re a good investment and how to deal with them so that.<\/span><br \/><span title=\"33:56 - 34:02\" data-start=\"00:33:55.699\" data-end=\"00:34:01.522\" data-spk=\"0\" data-label=\"Jason\">It\u2019s a huge topic right now and I would just point out that well.<\/span><\/p>\n<p><small>[34:02]<\/small>\u00a0<span title=\"34:02 - 34:11\" data-start=\"00:34:01.961\" data-end=\"00:34:11.094\" data-spk=\"0\" data-label=\"Jason\">The bulk of Amazon\u2019s ad business is a retail media Network Amazon is bigger than a retailer right and so.<\/span><br \/><span title=\"34:11 - 34:16\" data-start=\"00:34:11.371\" data-end=\"00:34:16.022\" data-spk=\"0\" data-label=\"Jason\">The ads Revenue the Amazons talking about does include.<\/span><br \/><span title=\"34:16 - 34:26\" data-start=\"00:34:16.190\" data-end=\"00:34:26.483\" data-spk=\"0\" data-label=\"Jason\">Thursday night football and Lord of the Rings and you know at which in a lot of other things that Target does not have right so I just.<\/span><br \/><span title=\"34:27 - 34:31\" data-start=\"00:34:26.616\" data-end=\"00:34:31.303\" data-spk=\"0\" data-label=\"Jason\">Want to remind people that it\u2019s not really apples-to-apples to compare.<\/span><br \/><span title=\"34:32 - 34:39\" data-start=\"00:34:31.501\" data-end=\"00:34:39.102\" data-spk=\"0\" data-label=\"Jason\">You know Amazon\u2019s you know kind of 40 billion dollar annualized run rate against.<\/span><br \/><span title=\"34:40 - 34:45\" data-start=\"00:34:39.505\" data-end=\"00:34:45.298\" data-spk=\"0\" data-label=\"Jason\">You know and say that gosh if if they\u2019re getting you know this many dollars per.<\/span><br \/><span title=\"34:46 - 34:53\" data-start=\"00:34:45.617\" data-end=\"00:34:53.019\" data-spk=\"0\" data-label=\"Jason\">\/ retail gmv dollar than everyone else should be getting the same because it\u2019s not really Apples to Apples.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[34:54]<\/small>\u00a0<span title=\"34:54 - 35:05\" data-start=\"00:34:53.645\" data-end=\"00:35:05.176\" data-spk=\"1\" data-label=\"Scot\">On the Amazon ads I saw this interesting article was titled Google\u2019s pain is Amazon\u2019s gaining which I thought was cute and it talked about how if you annualize that<\/span><br \/><span title=\"35:05 - 35:12\" data-start=\"00:35:04.984\" data-end=\"00:35:11.557\" data-spk=\"1\" data-label=\"Scot\">you know this is a 40 billion dollar line for Amazon which makes it a third the size of Facebook now<\/span><br \/><span title=\"35:11 - 35:27\" data-start=\"00:35:11.408\" data-end=\"00:35:26.821\" data-spk=\"1\" data-label=\"Scot\">and a sixth the size of Google so we\u2019ve we\u2019ve we\u2019ve on the show we\u2019ve been talking about this and I remember when it passed Snapchat and then Twitter so it\u2019s really there\u2019s a day where it could close in on Facebook because<\/span><br \/><span title=\"35:27 - 35:27\" data-start=\"00:35:26.671\" data-end=\"00:35:27.271\" data-spk=\"1\" data-label=\"Scot\">it\u2019s,<\/span><br \/><span title=\"35:27 - 35:38\" data-start=\"00:35:27.320\" data-end=\"00:35:37.787\" data-spk=\"1\" data-label=\"Scot\">the Amazon site is growing very rapidly Facebook seems kind of lost in the jungle focused on virtual reality and not fixing their core business so those lines could cross pretty quickly which would<\/span><br \/><span title=\"35:38 - 35:46\" data-start=\"00:35:37.691\" data-end=\"00:35:45.755\" data-spk=\"1\" data-label=\"Scot\">give us this new duopoly of Google and Amazon as which three years ago if we had said that people would have thought were crazy.<\/span><br \/><span title=\"35:47 - 35:49\" data-start=\"00:35:46.651\" data-end=\"00:35:48.657\" data-spk=\"1\" data-label=\"Scot\">You think we\u2019re crazy but yeah it\u2019s crazy.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[35:48]<\/small>\u00a0<span title=\"35:48 - 35:58\" data-start=\"00:35:48.357\" data-end=\"00:35:58.410\" data-spk=\"0\" data-label=\"Jason\">It totally could I would say one caveat here there is a big difference at the moment between Amazon\u2019s ad business and like meta and Google\u2019s ad business.<\/span><br \/><span title=\"35:59 - 36:05\" data-start=\"00:35:58.507\" data-end=\"00:36:04.762\" data-spk=\"0\" data-label=\"Jason\">The Amazon still gets a lot of traffic by buying ads on Google,<\/span><br \/><span title=\"36:05 - 36:13\" data-start=\"00:36:04.774\" data-end=\"00:36:13.205\" data-spk=\"0\" data-label=\"Jason\">so you know that that the other big ad platforms are all organically earning their traffic and then they\u2019re monetizing it<\/span><br \/><span title=\"36:13 - 36:26\" data-start=\"00:36:13.169\" data-end=\"00:36:25.547\" data-spk=\"0\" data-label=\"Jason\">Amazon does kind of by eyeballs at wholesale from Google and then sell them retail to two brands on Amazon so there is a bit of Arbitrage that\u2019s happening there now as they create more,<\/span><br \/><span title=\"36:26 - 36:37\" data-start=\"00:36:25.620\" data-end=\"00:36:37.049\" data-spk=\"0\" data-label=\"Jason\">loyal Amazon Prime customers and more you know viewers of all their Entertainment Properties that you know it\u2019ll be more apples to apples but and I haven\u2019t looked this quarter but last quarter<\/span><br \/><span title=\"36:37 - 36:46\" data-start=\"00:36:36.923\" data-end=\"00:36:46.128\" data-spk=\"0\" data-label=\"Jason\">you know they you know on a or a quarter ago it on an annual basis they spent about 17 billion dollars on ads so.<\/span><br \/><span title=\"36:46 - 36:50\" data-start=\"00:36:46.213\" data-end=\"00:36:50.262\" data-spk=\"0\" data-label=\"Jason\">The the bottle out of traffic that they then result.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[36:50]<\/small>\u00a0<span title=\"36:50 - 37:05\" data-start=\"00:36:50.089\" data-end=\"00:37:04.961\" data-spk=\"1\" data-label=\"Scot\">Cool so that that kind of wraps up our Q3 highlights so then let\u2019s zoom out and at the top I mentioned you know that Am That Wall Street looks at kind of the current quarter in the future quarter so that was Q3 so it\u2019s kind of a miss and then<\/span><br \/><span title=\"37:05 - 37:14\" data-start=\"00:37:04.781\" data-end=\"00:37:14.455\" data-spk=\"1\" data-label=\"Scot\">the whenever a public company like this updates the current quarter they also update our outlook for the future quarter which in this context would be fourth-quarter calendar fourth quarter<\/span><br \/><span title=\"37:14 - 37:25\" data-start=\"00:37:14.353\" data-end=\"00:37:24.520\" data-spk=\"1\" data-label=\"Scot\">so Amazon guided to 142 148 billion for the quarter so that would imply about it 4.8 percent year over year growth at the midpoint,<\/span><br \/><span title=\"37:25 - 37:32\" data-start=\"00:37:24.557\" data-end=\"00:37:32.296\" data-spk=\"1\" data-label=\"Scot\">now they don\u2019t give us guidance on North America international so there\u2019s imagine inside of there you would still see North America growing.<\/span><\/p>\n<p><small>[37:32]<\/small>\u00a0<span title=\"37:32 - 37:42\" data-start=\"00:37:32.465\" data-end=\"00:37:42.181\" data-spk=\"1\" data-label=\"Scot\">Fifteen to twenty percent and then you know the non North America they called the non-domestic business having a headwind and that\u2019s where you get this 4.8 would be the Delta there.<\/span><br \/><span title=\"37:42 - 37:50\" data-start=\"00:37:42.277\" data-end=\"00:37:49.969\" data-spk=\"1\" data-label=\"Scot\">But what\u2019s really bad about that is Wall Street prior to this report had thought they would do 155 billion so let me say those numbers<\/span><br \/><span title=\"37:50 - 37:54\" data-start=\"00:37:49.957\" data-end=\"00:37:54.481\" data-spk=\"1\" data-label=\"Scot\">clearly Wall Street thought that Amazon would do 155 billion in<\/span><br \/><span title=\"37:54 - 38:12\" data-start=\"00:37:54.398\" data-end=\"00:38:12.202\" data-spk=\"1\" data-label=\"Scot\">in fourth quarter and now they\u2019re saying basically 144 so so that was a pretty big lowering of expectations and then also on the bottom line Wall Street thought that would do five billion of operating income and Amazon said well 024 the midpoints to that\u2019s a change of three billion dollars so<\/span><br \/><span title=\"38:12 - 38:15\" data-start=\"00:38:12.046\" data-end=\"00:38:15.044\" data-spk=\"1\" data-label=\"Scot\">Wall Street didn\u2019t like that but you know if you\u2019re<\/span><br \/><span title=\"38:15 - 38:29\" data-start=\"00:38:14.979\" data-end=\"00:38:28.643\" data-spk=\"1\" data-label=\"Scot\">if you\u2019re you know jassy and you\u2019re running this thing you want to lower expectations because it makes it easier to beat them in the long run if you part of the Amazons DNA is to be a much longer thinking kind of company so you,<\/span><br \/><span title=\"38:29 - 38:35\" data-start=\"00:38:28.679\" data-end=\"00:38:35.109\" data-spk=\"1\" data-label=\"Scot\">typically if that\u2019s how you think you\u2019ll take some short-term pain for long-term gain so you know some folks feel like,<\/span><br \/><span title=\"38:35 - 38:47\" data-start=\"00:38:35.121\" data-end=\"00:38:47.493\" data-spk=\"1\" data-label=\"Scot\">maybe the kitchen sink this thing and they knew third quarter wasn\u2019t going to meet what everyone wanted say thought this is a great time to go ahead and rip the Band-Aid off and really lower into the fourth quarter other people look at that body language like I mentioned and they say wow.<\/span><\/p>\n<p><small>[38:48]<\/small>\u00a0<span title=\"38:48 - 39:00\" data-start=\"00:38:47.890\" data-end=\"00:39:00.046\" data-spk=\"1\" data-label=\"Scot\">You know it maybe it got worse especially in Europe in the fourth quarter and maybe that\u2019s what caused them to really kind of Ratchet this down we won\u2019t sadly we won\u2019t know until January February when they release their results but<\/span><br \/><span title=\"39:00 - 39:09\" data-start=\"00:38:59.885\" data-end=\"00:39:08.784\" data-spk=\"1\" data-label=\"Scot\">you can count on us here at the Jason Scott show we\u2019re going to be tracking the holiday we have some really great content planned for you this is when we kick into overdrive and really<\/span><br \/><span title=\"39:09 - 39:15\" data-start=\"00:39:08.676\" data-end=\"00:39:14.961\" data-spk=\"1\" data-label=\"Scot\">track things going on so we have a lot of content there but it\u2019s not a great set up heading into the holiday would you agree with that Jason.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[39:15]<\/small>\u00a0<span title=\"39:15 - 39:25\" data-start=\"00:39:15.124\" data-end=\"00:39:24.744\" data-spk=\"0\" data-label=\"Jason\">Yeah I definitely think this is a strong warning sign for people that are bullish on the the holiday,<\/span><br \/><span title=\"39:25 - 39:31\" data-start=\"00:39:24.816\" data-end=\"00:39:31.173\" data-spk=\"0\" data-label=\"Jason\">I do you know kind of overall I looked at this whole thing and I say you know as an interesting earnings call.<\/span><br \/><span title=\"39:31 - 39:35\" data-start=\"00:39:31.270\" data-end=\"00:39:35.085\" data-spk=\"0\" data-label=\"Jason\">Not a heck of a lot in this earnings call was.<\/span><br \/><span title=\"39:36 - 39:44\" data-start=\"00:39:35.729\" data-end=\"00:39:44.171\" data-spk=\"0\" data-label=\"Jason\">A result of internal stuff going on in Amazon that like it very much reflects the macroeconomic trends that.<\/span><br \/><span title=\"39:44 - 39:49\" data-start=\"00:39:44.292\" data-end=\"00:39:49.195\" data-spk=\"0\" data-label=\"Jason\">That are happening to Amazon and those same macroeconomic trends of course.<\/span><br \/><span title=\"39:50 - 39:58\" data-start=\"00:39:49.562\" data-end=\"00:39:58.010\" data-spk=\"0\" data-label=\"Jason\">Happened to everyone else as well so it\u2019s interesting you know Amazon has become a very useful sort of.<\/span><br \/><span title=\"39:58 - 40:07\" data-start=\"00:39:58.389\" data-end=\"00:40:07.126\" data-spk=\"0\" data-label=\"Jason\">Indicator for where the economy is going and you know the economists have been arguing quite a bit about where it\u2019s going so it\u2019s interesting to see some data.<\/span><\/p>\n<p><small>[40:14]<\/small>\u00a0<span title=\"40:14 - 40:23\" data-start=\"00:40:13.508\" data-end=\"00:40:23.206\" data-spk=\"0\" data-label=\"Jason\">Yeah so this is where we will leave it today if this was valuable for you we certainly would love it if you jump on.<\/span><br \/><span title=\"40:23 - 40:35\" data-start=\"00:40:23.321\" data-end=\"00:40:35.416\" data-spk=\"0\" data-label=\"Jason\">To iTunes and leave us that five-star review make sure you\u2019ve got your podcast player dialed in to download our new episodes because you\u2019re not going to want to miss.<\/span><br \/><span title=\"40:36 - 40:39\" data-start=\"00:40:35.507\" data-end=\"00:40:38.811\" data-spk=\"0\" data-label=\"Jason\">Some of the the play-by-play of holiday.<\/span><\/p>\n<p><b data-spk=\"1\">Scot:<\/b><br \/><small>[40:39]<\/small>\u00a0<span title=\"40:39 - 40:46\" data-start=\"00:40:38.986\" data-end=\"00:40:46.185\" data-spk=\"1\" data-label=\"Scot\">Thanks for joining us everyone we hope all of your holiday Q4 results exceed your expectations and.<\/span><\/p>\n<p><b data-spk=\"0\">Jason:<\/b><br \/><small>[40:46]<\/small>\u00a0<span title=\"40:46 - 40:50\" data-start=\"00:40:46.383\" data-end=\"00:40:50.493\" data-spk=\"0\" data-label=\"Jason\">Until next time happy Commercing.<\/span><\/p>\n<\/div>\n<p><p><a href=\"https:\/\/dmsretail.com\/online-workshops-list\/\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-496\" src=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\" alt=\"Retail Online Training\" width=\"729\" height=\"91\" srcset=\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png 729w, https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90-300x37.png 300w\" sizes=\"auto, (max-width: 729px) 100vw, 729px\" \/><\/a><\/p><br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A weekly podcast with the latest e-commerce news and events. Episode 298 is a recap of Amazon\u2019s Q3 2022 Earnings. Subscribe: ????? Episode 298 is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-7749","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-podcasts"],"_links":{"self":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/7749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/comments?post=7749"}],"version-history":[{"count":0,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/posts\/7749\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media\/1121"}],"wp:attachment":[{"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/media?parent=7749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/categories?post=7749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dmsretail.com\/RetailNews\/wp-json\/wp\/v2\/tags?post=7749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}