Amazon Net Income Plunges 96%, Shares Follow

http://techcrunch.com/2012/07/26/amazon-q2-2012/

by uladzislau • 14 years ago

16 8 14 years ago

techcrunch.com

tomfakes• 14 years ago

Hmm, the AMZN after hours trading shows them to be UP after this news. This headline seems to be verifiably false.

hkmurakami2• 14 years ago

looks like the stock tanked initially but has recovered since.

Refer to chart: http://www.marketwatch.com/investing/stock/amzn

skylan_q• 14 years ago

Net income did tank 96%. Net income refers to profits, not revenues.

Looking at the chart near the end, it shows the little sliver of a bar that's about 4% the size of the bar that comes before it.

billderose• 14 years ago

Agreed, looks like techcrunch fishing for a headline.

nodesocket• 14 years ago

Net revenue is gross (total) revenue minus returns and any other negative revenue. (Expenses have nothing to do with Net Revenue. Net Revenue is NOT the same as profit.)

Just because net revenue is down, does not mean that the market didn't already account for this change. The real thing to look at is EPS and expectations. Additionally, after hours should not be used as any indicator since the volume is basically insignificant.

hkmurakami2• 14 years ago

Am I wrong to think that considering their razor thin margins, such dramatic reductions aren't really surprising?

They have over $10B in revenue but only about $100MM in profits. Fluctuations in their costs would easily wipe out those profits.

Steko• 14 years ago

Correct. This is something mildly interesting blown far out of proportion by linkbait title, some fun with statistics and apparently after many years of killing profits to focus on growth people still buy Amazon's stock because they're hoping for blowout quarters. Better luck next time I guess.

cbr• 14 years ago

"Of that 96 percent drop, Amazon estimated that $65 million of the net loss was due to its acquisition and integration of Kiva."

Amazon Net Income Plunges 96%, Shares Follow

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