Amazon's Foreign Exchange Pain

And, Pinterest's monthly user surge.

February 07, 2025

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Amazon's Foreign Exchange Pain

Despite posting better-than-expected financial earnings results on Thursday, Amazon (Nasdaq: AMZN) fell 4.05% in after-hours trading due to a weak forecast.

Financials: Amazon reported earnings of $1.86 per share and revenue of $187.8 billion in the past quarter; both were better than expected.

Powering the Story: The company only anticipates net sales to be between $151 billion and $155.5 billion in the current quarter because it expects “an unusually large, unfavorable impact” from foreign exchange rates (thank you, strong U.S. dollar).

Early Bird’s Nest Egg Gains: A stronger U.S. dollar negatively impacts Amazon because it reduces the value of foreign earnings.

  • A strong dollar makes U.S. products more expensive in international markets, which could reduce demand for Amazon’s exports.

  • Nealy 30% of Amazon's revenue is generated outside the U.S.

Final Thoughts: Another problem for Amazon is that AWS growth is slowing down.

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Notables

Notable Earnings Today: Plains All American (Nasdaq: PAA), Frontier Group Holdings (Nasdaq: ULCC), Flowers Foods (NYSE: FLO), Newell Brands (Nasdaq: NWL), Avantor (NYSE: AVTR), Kimco Realty (NYSE: KIM), Fortive (NYSE: FTV), Cboe Global Markets (BATS: CBOE), Byrna Technologies (Nasdaq: BYRN), Canopy Growth (Nasdaq: CGC), Construction Partners (Nasdaq: ROAD), GrafTech International (NYSE: EAF), Green Plains (Nasdaq: GPRE), Perella Weinberg Partners (Nasdaq: PWP), Protolabs (NYSE: PRLB).

Notable IPOs Today: Titan America SA (NYSE: TTAM), Eagle Financial Services Inc Common Stock (Nasdaq: EFSI), Sionna Therapeutics, Inc. Common Stock (Nasdaq: SION).

Notable Equity Crowdfunding Campaigns Ending Today: Lolaark Vision (Netcapital), FinLitX (Netcapital), 2040 Energy (Wefunder), Uniquely Complex (Honeycomb).

Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Nonfarm Payrolls (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET), Labor Force Participation Rate (8:30 a.m. ET), Michigan Consumer Expectation / Sentiment (10:00 a.m. ET), Consumer Credit (3:00 p.m. ET).

Pinterest's Monthly User Surge

A mixed bag of financial earnings results on Thursday couldn’t slow down Pinterest (NYSE: PINS), with the stock jumping 18.49% in after-hours trading.

Financials: Pinterest reported earnings of 56 cents per share in the past quarter, which was lower than expected. But revenue was $1.15 billion, which was better than expected.

Powering the Story: Global monthly active users reached an all-time high of 553 million in the quarter.

Final Thoughts: Zooming out, 2025 has been pretty good for social media stocks.

E.l.f. Beauty Cuts Outlook

In addition to producing lackluster financial earnings results on Thursday, E.l.f. Beauty (NYSE: ELF) plunged 24.85% in after-hours trading after cutting its forecast.

Financials: E.l.f. Beauty reported earnings of 74 cents per share in the past quarter, which was lower than expected. Revenue reached $355.3 million, which was better than expected.

Final Thoughts: The company cut its outlook for the year, citing “softer than expected trends in January.”

Can’t Make This Up: Trump Media files for ‘Truth․Fi Bitcoin Plus ETF’ (Cointelegraph)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.