Investors may be growing tired of Amazon's (AMZN) lack of profits, at least that seems to be the case after last week's earnings
Investors may be growing tired of Amazon's (AMZN) lack of profits, at least that seems to be the case after last week's earnings. The stock dropped from about $320 a share to $285 after the company badly missed earnings expectations. AMZN posted a loss of $437 million compared to an expected loss of $331 million. Sales came in at $20.6 billion versus expectations of $20.9 billion. The company also projected next quarter's sales to fall between $27 billion to $30 billion. Analysts had estimated fourth quarter sales of $31 billion. The story was much the same as has been for the past several quarters. AMZN is foregoing profits in order to sink money back into the company. This time around, the huge investment in the Fire Phone took its toll on the company. AMZN is taking a $170 million charge on the as-yet unsuccessful phone. Keep in mind, the company's sales still increased by 20% year-over-year, and it's only the first iteration of the Fire Phone. (VIEW LINK)
I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...
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