Key numbers to watch in Apple, Amazon and Alphabet earnings – CNBC
Headline numbers: Earnings, revenue; Google ad sales; Amazon e-commerce sales
What Meeks is watching: Cloud
“As you’ve seen with two other stocks that are jumping on the cloud — Microsoft and Amazon — the dialogue about the company is going to go to what kind of traction they have in the cloud space,” Meeks said of Alphabet.
In addition to being a dominant force in online commerce, Amazon is also a leading provider of cloud services. It has 31 percent market share, according to Synergy Research Group, followed by Microsoft’s Azure, at 9 percent. Google has about 4 percent market share, according to Synergy.
But Microsoft reported its cloud revenue grew 116 percent last quarter, with commercial cloud annual revenue run rate of more than $13 billion.
Meeks is hoping Amazon will hit at least the level of Microsoft’s rate of cloud sales growth. But while Meeks sold Amazon’s stock, he’s not planning to buy it back just yet.
“What happens with tech stocks is they are notoriously volatile,” “There will be some Amazon-related issue — a competitive issue, even macroeconomic issue — that will cause a dip in the stock, and if it gets deep enough, I will buy it then.”