Skip to comments.Amazon slumps after missing expectations (profit falls 73%!)
Posted on 10/25/2011 2:51:00 PM PDT by library user
Oct 25 (Reuters) - Amazon.com Inc shares slumped after reporting weaker-than-expected results as it spent heavily on a new tablet computer and other long-term projects.
The stock plummeted 14 percent to $194.31 after hours, after closing at $227.15 on Nasdaq.
The world's largest Internet retailer said on Tuesday its third-quarter net income was $63 million, or 14 cents a share, versus $231 million, or 51 cents a share, a year earlier. Revenue was $10.88 billion, up 44 percent from the third quarter of 2010, it added.
Analysts had expected Amazon to report third-quarter earnings per share of 24 cents on revenue of $10.95 billion, according to Thomson Reuters I/B/E/S.
"Lower profit margins would be acceptable, but for the lower-than-expected revenue growth numbers," said Fred Moran, an analyst at The Benchmark Co.
(Excerpt) Read more at reuters.com ...
I think they thought that everyone was going to jump onto Amazon Prime when Netflix screwed up. It didn’t happen.
People don’t -have- to buy books, or any other product Amazon offers. Savings are now exhausted for many. Non-essentials are taking a hit, as the blight continues. IMO.
Netflix ain’t doing well either. They lost 800,000 customers recently. Biggest customer loss since 2004. And Netflix stock was down 35% today alone.
I’ve certainly done my part as a patriotic consumer. If I don’t see a big brown truck in my driveway at least once a week, I get pretty snippy.
It’s partially the iPad effect. The price of ebooks had to be slashed this summer as books began being bought on more tablets, and the readers had to be made into a product more competitive with the iPad.
Amazon is more of a general merchandise retailer than bookseller any more. Their torrid growth is slowing as they get bigger. So, I tend to agree with you, the results likely reflect the economy.
As a person that sells used books on Amazon, I can tell you that market has tanked big time.
I ordered 2 Kindle Fire’s for my 10 and 8 year old for Christmas.
If I like it, I’ll get one for me too!
Wow, is that how much they charge? It would be a hair cheaper per episode to just buy the dvd-sets. Which, is actually, what I tend to do.
I think it’s the economy as well. A lot of people are finally realizing that they need to tighten their belts. Don’t think it was a surprise that Netflix lost customers either.
I got front shocks for my Caddy cheaper there than I could find anywhere else, and they were the same OEM part manufactured by ZF Sachs.
Even if you don’t buy anything, the product reviews can be hilarious.
Now thats funny.
I guess the only way to sort it out is to examine the annual report; but, then again, I equate reading those to a quiet Sunday afternoon with the comics section..... offsetting obscene liabilities with tubs of "goodwill" is always good for a chuckle.
Amazon is outstanding from my perspective.
“Ive certainly done my part as a patriotic consumer. If I dont see a big brown truck in my driveway at least once a week, I get pretty snippy.”
That sounds like my house recently!
I told them the other day I was helping them keep their jobs, they agreed.
I just can’t pass up all the great bargains on things I know I will use, especially when I can find a 20-30% off coupon code on top of the sale!
These days I even buy razor blades on Amazon. I always look for items with free shipping on orders over $25.
Here's the truth. "Independent" analysts are supposed to project a company's earnings (i.e. profits) per share but the truth is they call the company and say "c'mon, I know you're not allowed to tell anybody but you know me, we're buds! what are you guys thinking?" Then the company tells the analyst, who writes his report accordingly.
The issue comes if they don't meet those targets, for two reasons. First, they make the analyst and all the talking heads who parrot their advice look really dumb and that cannot be forgiven. Second, the number came from them! What do you mean you can't meet it?! Don't talk to me about the gobs of money you made, you said you'd make gobs of money plus a little more and you didn't! Don't you even know what's happening in your own company?! Holy smokes, I better sell!
So the stock gets punished.
My daughter’s in college, so she set up her own Amazon account and got free Prime for a year. I occasionally ask her to order something if I want it quick or can’t find $25 worth of stuff.
I pretty much have a steady stream of items coming to my door. We received several items today, and I have two orders in process.
I bet you love to track those packages too!
States taxing internet sales?
You bet! And I always check woot.com at 1 am Eastern and slickdeals.net at least four times a day. Three more weeks and I'll have all my Christmas shopping done.
I have Amazon.com stock and plan to keep it for the long haul. I said 10 years ago they were going to be bigger than Wal-mart someday and they are still on track to do that.
Prime is a great shipping deal, but the video is fairly limited. There's too much competition from Netflix, Hulu, Crackle, Epix, and all the other online streaming video sites. There's only so much time to spend watching a small rectangular screen, while life goes on and bills stack up. Amazon should stick to what it's good at--things people want, shipped fast and free.
Really hoping Amazon doesn’t go out of business, would be a disaster for me