Warren Buffett fund bets on Amazon, the bonus point


Warren Buffet, dubbed "the Oracle of Omaha," announced on CNBC a stake in its Berkshire Hathaway holding company on Amazon, the American e-commerce giant. Never before has Berkshire Hathaway bet on Amazon.

The iconic American billionaire, however, said he was not personally behind the capital investment, the amount of which was not disclosed, but one of the holding's investment managers. Buffett also admitted being an "idiot" for not having invested earlier in Amazon, while praising CEO and founder Jeff Bezos.

Based in Seattle and established in 1994, the original specialty of the company was the sale of books, but then diversified widely to sell products of all kinds, including food, to reach a record number last year. business record of $ 233 billion (+ 31% in one year). In parallel, the company has developed a specific offer, such as 1-Click orders, personalized recommendations, the Amazon Prime Video program (videos on demand), Kindle Direct Publishing (self publishing services), Kindle reader, Tablets Fire, high speakers connected to Amazon Echo, Alexa Voice Assistant, and Amazon Web Services (AWS, cloud or cloud computing services) for businesses and consumers.

AWS is playing an increasingly important role in Amazon's financial performance, as the latest published results show once again. In the first three months of 2019, AWS accounted for just over half of the group's total net profit in the period, according to Capital.fr. Higher advertising and third-party sales revenue also contributed $ 3.6 billion in the first quarter, more than doubling year-over-year to $ 7.09 per share, compared to $ 4.67 in the first quarter. by the market. Amazon, however, warned that the second quarter may not be as good.

These quarterly results and, above all, Warren Buffett's announcement were well received on Wall Street, where Amazon's share now approaches $ 2,000, while the company's market capitalization of the order of $ 966 billion currently , is not far from 1,000 billion.

In the bond market, group loans are also well-targeted. To name just a few, the Amazon.com Inc. title with a 3.15% coupon and a maturity on August 22, 2027 is being traded at 100.55% of face value. What to expect a return of 3.07% for an AA rated loan at Standard & Poor's denominated at $ 2,000.


New Releases

Amazon.com: warren buffett fund bets on amazon, which takes off on the stock market (Tradingsat.com/AFP)

Discover AWS, the activity that earns more for Amazon than for e-commerce (Capital.fr)

Amazon: profits are booming thanks to cloud and advertising (BourseDirect.fr)


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