If you are looking for consistency in Wall Street, forget about it. Earlier this week Amazon announced profits that Wall St. estimates survived a little. Ultimately, Amazon reported a net profit of 97 million $ (a decrease of 45% year over year) and EPS of $0.21 to $0.38 per share in the same quarter a year earlier.
Analysts are expecting earnings of $0.27 per share and 22.26 billion $ in sales. Amazon delivered 21,27 billion $.
While is it happened then? Because the way Apple has plunged by more than 10% after having reported their fourth most profitable in history and exceeded estimates of Wall Street to the EPS, stands to reason why Amazon would thus increase?
Well as it turns out, investors applauded announced subpar earnings for Amazon to propel the stock to the summits. Currently, Amazon shares are trading at $277.37, the stock is up almost 7%. In the trade after hours last night, the stock increased by 10%.
For some reason, Wall Street is enamoured with Jeff Bezos and Amazon, and despite the fact that the company lost money in 2012 the stock continues as rising tomorrow. Specifically, the company lost 39 million $ in 2012.
Delve more deeply into revenues from Amazon, greater detailing of the nation said that up to 70% eBook sales while sales of physical books had their lowest growth for 17 years, increase of only 5%.
In the future, Amazon provides sales of 15 billion $ 16.6 billion $, slightly below the estimates of Wall Street to 16.85 billion $.
Anyway that you look at, it boggles the mind that the shares of Amazon are on the top and upwards. I guess in the harsh world and dry which is the stock market, revenue growth is the name of the game. To this end, if Apple making money hand over fist, increase the profits of 20% is much more difficult that it is for a company like Amazon is actually losing money.
Well, trying to figure out the stock market is a losing battle and sometimes you just sit and watch the absurdity of unfold.
In any case, the following table, courtesy of Fortune really drives home the difference in the way the street views Amazon and Apple.
On the flip side, the New York Times yesterday, tried to give a sense of pleasure to the investor in income from Amazon:
What attracted the attention of investors is that operating margins as a percentage of the consolidated turnover increased by 3.2%, 2.7% a year earlier.
The carrot for investors to Amazon improvement in margin over time,"says Gene Munster, analyst at Piper Jaffray. Apple, on the other hand, would need to build an iPhone less expensive to continue to grow as rapidly as it has been, which is expected to decide in its margins.
For more than ten years, Amazon has wavered between minimal profit and no profit. In 2012, he said Tuesday, he lost money. But Wall Street has always been more promises that results, and Amazon is always on the verge of transforming its online presence overwhelming buckets of money.
'As long as the dream is there, the stock will go up,' said Mr. Munster.
And so it goes to Wall Street.
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