Peter Kafka

Recent Posts by Peter Kafka

Amazon Hits Top Line, Misses on the Bottom; Shares Plummet

Another day, another disappointment from an Internet high-flier. Yesterday Netflix (NFLX) posted revenue below Wall Street’s expectations and got hammered; today Amazon (AMZN) missed its earnings number and is getting crushed.

Jeff Bezos and company earned $0.45 per share on revenues of $6.57 billion. The street was looking for $6.54 billion and $0.54 a share.

Shares dropped immediately after the numbers were released; the most recent data I’ve seen show AMZN down 15 percent in after-hours trading. Apparently investors are more concerned about the EPS miss than they are cheered by Amazon’s Q3 guidance, which is better than expected: The company says it expects to book between $6.9 billion and $7.6 billion; analysts had expected something like $7.2 billion.

As always, many thanks to Citigroup Mark Mahaney for his cheat sheet, which allows those of us so inclined to play along at home:

Per usual, Amazon plays it close to the vest with Kindle sales data (all data, really). Nothing new beyond the not-that-specific numbers it already sent out this week boasting about accelerating device and book sales.


Latest Video

View all videos »

Search »

I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik