Amazon.com Inc.’s earnings miss and weak holiday forecast elicited a similar reaction seen by many recent tech unicorns, IPO Edge Editor-in-Chief John Jannarone told Cheddar TV in a live interview.
Jannarone pointed out that Amazon, with a mere 4% net income margin, is vulnerable to a reversion to sustained losses in the event of an economic downturn. What’s more, Alibaba Group Holdings Limited could have a better chance seeking international partners who want to curry favor with China rather than deal with the powerful Jeff Bezos.
Meanwhile, Intel Corporation posted surprisingly strong results, but Jannarone warned about the competitive threat from the likes of Taiwan Semiconductor Mfg. Co. Ltd. and Advanced Micro Devices, Inc., which have recently pulled ahead with their chip technology.
Visa also topped expectations, and Jannarone was bullish on the payments giant, arguing that it could be as nimble as smaller fintech operators. The opportunity in emerging markets, in particular, is robust for Visa.