Amazon shares set record after strong quarterly profit

Profits down 45%, earnings miss, revenue light, guides lower.Is that the strong report u guys talking about? explains their 3800 PE

Profits down 45%, earnings miss, revenue light, guides lower.Is that the strong report u guys talking about? explains their 3800 PE

They did not report better than expected profit. Actually they missed it bad.

AMZN strong performance was $0.28 per share with a 3099 PE before zooming 25+ after close.

“It boggles the mind,” said BGC Financial analyst Colin Gillis, who attributed the stock price jump to slightly stronger-than-expected operating income. “A lot of people scratch their head at the valuation given to Amazon and the support the stock has.”

Meanwhile, Apple Cooks along (see how I did that?) with a paltry EPS of $44 and a PE of about 10, not accounting for the$137,000,000,000 they hold in CASH and EQUIVALENTS or the $1,000,000,000 they net each and every week?

Market… you on crack.

1. (Reuters) – Amazon.com Inc shares hit a record on Tuesday after it “reported better-than-expected quarterly profit”.

This statement is factually not correct, profit came in at US $ 0.22,
consensus expectations were for US $ 0.29 per share.

2. “fueled by the growth of higher-margin businesses during the fiercely competitive holiday quarter”

This might not be a correct statement either, the margin increase in all likelyhood is partially the result of lower kindle sales:

“Amazon head Jeff Bezos has said the world’s largest online retailer doesn’t turn in a profit with its Kindle Fire HD tablet, as well as the soon-to-be-released Paperwhite e-reader device. Bezos stressed that Amazon sell the hardware at cost.”

“Another one, certainly we are thrilled to have a Paperwhite in our lineup best e-reader that’s out there and we are very pleased with it, but we couldn’t keep up with demand. We would have had more sales in Q4 for able to keep up with demand and so the team is working very hard to make sure we have good in-stock going forward on that product, but we certainly could have sold more in Q4.”

Thomas Szkutak – Chief Financial Officer, Senior Vice President
on the earnings call today

We could dissect this article some more and point out further inaccuracies. What are your standards? Is Reuters trying to be factually correct as far as possible, or are they trying to be a propaganda piece for the sell side of Wall Street?

@paul0112000 Reuters does a pretty good job, most of the time. The headline is misleading. Shares hit a record in after hours trading. The Wall Street Journal today on Obama’s immigration policy:

Some warning signs about his bipartisan intensions.