This page has been archived and commenting is disabled.
Amazon Margin Collapse: Revenue Beat, Earnings Miss Big, Cuts Forward Operating Income
A company with already razor thin margins comes out and while it beats revenues, reporting $9.86 billion in sales on expectations of $9.54 billion, it literally shits the bed on the bottom line, reporting $0.44 EPS on expectations of $0.61, proving that this mythical "margin collapse" thing is actually really real. And the icing on the cake: it provides an operating income guidance range for Q2 of $95 million to $245 million. Expectations? $369.5 million. Can you spell Timber? Market sure can.
AMZN Second Quarter 2011 Guidance
-
Net sales are expected to be between $8.85 billion and $9.65 billion,
or to grow between 35% and 47% compared with second quarter 2010. -
Operating income is expected to be between $95 million and $245
million, or between 65% decline and 9% decline compared with second
quarter 2010.
-
This guidance includes approximately $180 million for stock-based
compensation and amortization of intangible assets, and it assumes,
among other things, that no additional business acquisitions or
investments are concluded and that there are no further revisions to
stock-based compensation estimates
»
- 9496 reads
- Printer-friendly version
- Send to friend
- advertisements -
You spoke too soon, Tyler. AMZN has nearly halved its after hours loss. It's just a fucking joke at this point. Big earnings miss=don't expect to hear about this on CNBC tomorrow except maybe a 5 second sound byte about buying the dips. They are talking about it now, though. But by tomorrow it will all be pushed to the trash bin just like NFLX today. No one really mentioned how the stock tanked bigtime. It was all about "3 year highs!"
Down 2%. Look out below.
Yeah, it doesn't matter. Stocks to the fucking moon. As for Amazon, BTFD, at a 1,000 times earnings it's a fucking steal compared to the bubble silver is in, even though of course none exists anymore.
Business Model Alert!
sales booming; margins won't cover fixed expenses & $4.4 Tril. of free shipping.
I thought I was the only one who remembered Value America. Internet retailers are great at killing margins, especially their own.;)
in 48 hours this will be forgotten about and up it will go.
$180mm of stock based comp is an "add back" as if it were non-recurring....
Cute. It's one of the trix to rig reports
What are all of those narrowly placed green saw-tooth squiggles going rapidly up and down on Tyler's AMZN chart? Somebody explain. /sarc
Let us get organized and do something activist about this disgusting shit: Every ZHer in the world, please short sell AMZN at 9:30 am tomorrow, all at once, with all of your dry powder. This type of obscenity deserves to be punished. Take down AMZN!
Somebody slap me if i'm wrong, but I think the whole point of Tyler emphasizing the EPS miss is that inflation is now visible in the evaporating profit margins, and slashed forward operating income of a major non-manufacturing company. Not a good sign for the overall "recovery."
God i feel like a three year old saying this but I dont think people are getting the significance.
I'm sorry, did you say something? I was sorta staring at cleancog's avatar...
+2
Yes, we know that--it is a recurrent and powerful trope here at ZH. We are just reacting to the lack of normal price discovery reaction to this obvious proble going forward for AMZN.
CNBC was hyping Barnes and Noble earlier. What an f---ing joke!
Liesman was last seen clogging up a toilet at a gas station down the road
Liesman lubing up his lips for his bearded lover man, BB. "Ohhh Steve, you sure do have a pretty mouth!"
Lies-man & The Bernank
President and the Grand Poobah of the International Order of Cue-Balls...
Lloyd Blank-dick-fein is Head Sexton...
Yet, by some miracle, the stock is down only 2% AH. Absolutely amazing how a high PE stock like this misses so badly and the shares bounce back sharply from their AH lows. The stock did the same exact thing in Q2 last year, where it missed horribly and was down 15% AH at one point only to close almost flat for the day. Margins were horrible then as well. They will attribute the margin compression to investment back in the business.
we've seen it before. "it was called the 90's." these companies HAD NO REVENUES...let alone profits. One of my favorite terms actually is "vapor-ware" in case you're wondering. Of course "if you simply stayed away" you missed "the sudden appearance of revenues and profits beyond belief" too. "it is fundamentally an act of faith" of course and i'll leave the soap box at that. "Amazon" has a strategy to grow the business. Some "little guy named Jobs" is "horning in." But "there was no market for this thing called an e-reader until Amazon created it." What's the potential? Well "take a look at the revenue line and learn something stupid." And I am not calling any of you here stupid. I'm calling THE MONEY stupid. As in "this is business 101"--"be the first to the market ALWAYS." That is ESPECIALLY true when "CREATING A MARKET WHERE NONE EXISTED BEFORE." The fact that "we don't know means dough."
And I spoke too soon as well...within 30 min this thing should be green. It's a fucking joke. Dow +250 tomorrow, book it. Doesn't matter if Ben raises rates 5%, announces QE3 and 4 are a-go, or if Japan blows up overnight. The Dow must go up. Buy the fucking dip indeed.
Ahh yes but it's extremely short sighted policy. Because margin squeezes hurt small biz first. Which ultimately translates to decreasing demand as constrained US consumers get more constrained. And of course the spill over into rising costs is intentional and more destructive in light of declining real incomes and small biz earnings.
I rarely give CNBS credit, but Santelli today was ranting about how the market no longer functions as a forward discounting mechanism. And that, friends, is essentially the end of capitalism. We've morphed into something else. The step is usually irrevocable.
That "something else" is no different than we saw in Zimbabwe or Weimar Germany - the market is the inverse of the currency it is priced in.
Nothing a little POMO and QE 3 to the tenth power won't cure. Every bit of bad economic and corporate news is good news for QE 3.0.
Bernanke to America. "Come on America. Make me write bad checks."
So funny that most rationalize that QE will fix the "broken wheel" or make them richer in some way. America is the circus and the clowns are aplenty.
Yes, But..
http://www.zerohedge.com/article/buy-stocks-buy-bonds-carry-orgy-leads-b...
And now Broadcom gets smacked!
Yeah BRCM is getting bitch slapped AH, but don't worry they just haven't found a way to spin the numbers yet. Give it about, oh...5 minutes or so?
Annnnnnd yeah I spoke too soon yet again. AMZN is now green in the AH. Un-fucking-real. So now you most certainly will hear all about this amazing profit report on Bloomberg and CNBC tomorrow, in between the coverage of the circle jerk Fed press conference featuring Liesman and Uncle Ben.
Anybody read Eric Janszen over at iTulip? Fascinating commentary today regarding the gold window opening down the road. Guy has been pretty incredible in terms of the macro events over last decade plus.
...and it's green.
Hilarity ensues.
Heh, look how fast AMZN bounced back.
Another horrific day for the "Armchair Anarchists" who saw 90% of all stocks go up, but the PM stocks imploded and GLD and SLV went down.
John Hathaway, Eric King, Rick Rule, et al must be at their wits end, staring at the screen in utter disbelief.
Another great hindsight call robo. You truly are a legend in your own mind.
If he wasn't right you'd be.
RT has been robotic about the mining stocks, recently.
today, doug casey put this piece up on goldSeek: QE2 and the Fate of the U.S. Economy - GoldSeek.com
the 4th chart down is: "Gold vs. S&P/TSX Venutre Composite"
you know you are a little tool right?
Yeah but you didn't make money today on all the BORING industrials that really are jacking earnings off the weak dollar. Active vs passive investing vs dollar positioning yeilds success. You don't have any.
I'd love for you to respond one time. No technical damage done at all. Silver still didn't break the 9-day.
Dont expect a response. Hes the paid troll of ZH to get traffic up. Every bit helps. Just poke him and have fun but remember why he is here.
I'm starting to believe that, actually. Sad what has happened to this site.
Wow I thought you had bailed into the ether. Nice to see you ghost.
Hmmm, whats it pay - I could chearlead all day for the right price. :-)
"take it off, let's see those things." actually, i might be quoting myself on that one. still....
Yup, utter disbelief that silver could be at the astronomical highs of last week while morons like RobotTrader and the troll brigade act as though silver had dropped 90%.
I'm not sure why so many people are obsessed by the minute by minute moves in silver or any other asset for that matter. It's irrelevant unless you update your net worth on a realtime basis. Prices change constantly, but value is ultimately reached over time.
tmoseloser doesnt own any silver. he bet it all on ghold. (goold plus 28% last 12, silver plus 157%-WSJ). I love the misery of jackasses.
Yes, the bottom in silver slammed us all the way back to a price we last saw...5 days ago.
Goddman it Robo, stop phoning it in; it's like you're not even trying anymore.
It's almost like he is just a script on a VM.
I like amazon bitchez. Not the stock, just the tax free stuff.
edit: (amazon bitchez, that's a good one!)
Timber LOL!
relax, take a step back, almost everyone knows Amazon is a revenue growth story that is investing for the future. It's a topline story riding a secular theme in an enviroment where penetration of e-commerce is in its infancy
And that's been the story for how long now? And in the meantime, how many main street retailers have been decimated in the process? Are they all going to work in the automated warehouses.
the AMZN miss is good because they are spending the money on the balance sheet, and spending for future earnings....straight from CNBC....no such thing as bad news...
Seems like 1999 earnings don't matter as long as you gain more customers.
zOMG I missed my chance to BTFD! CRAP!
This monopoly money market where the banker just keeps opening packets of money when he runs low is a blast!
Stock prices are rising faster than inflation, right?
"The sky is falling the sky is falling!!" Uh, well, maybe not. LOL. Wrong again ZH. Bought me some on the knee jerk losers.
Your a buyer of AMZN here?? LMFAO, you fucking clown ass bagholder.
so a company reports collapsing profit margins at a time when the market is trading at astronomical levels and the stock itself is trading near it's all time high while the dollar nears it's all time low...and you think you are smart for buying this piece of shit 10 minutes before the conference call which will likely reveal enough clarification to send the stock lower?
I assure you that unless this pig sprouts wings in the next 15 minutes...people here will have a feast ridiculing you.
good luck.
You just went long AMZN? Really. How many shares?
give him a few minutes. he has to find a chart to see what price he can tell you he bought at so it looks good. it's the Robotrader school of stock trading. You see, what they do is they wait for the move to happen, then they enter their secret time machine and go back and make their trades. needless to say...these guys are all fabulously wealthy...but only WHILE they are in their time machines.
Lollar's are getting even cheaper tonight.
Don't worry all will be forgotten as the US sleeps overnight and the magic futures fairy will come out and make all this good and high again by morning
tell me more Racer! tell me more!
See, the overnight futures fairy is already waving the magic feel good wand. and all things bad will be forgotten...
You just have to place your orders under the pillow at the close and the sweet dream magic works and brings you a new piece of money under your pillow in the morning
X seeing a bit of a margin squeeze itself
Those are fucking depressing earnings. Did they finally mark to market, or something?
Robotrader's mom had her life savings in Amazon, purchased at the all time high.
Good job, Robo, you clueless fuck. Your mom will eat cat food now.
Hey look - a new sock puppet! Let's keep it, Tyler. Can we?
Awww...I wanted to keep it.
Oh well. Them's the breaks, sock puppets.
Bernanke wants to have a good day for his media inaguration tomorrow. Call everyone. Must. have. stock. market. up...
Let's just put a crown on BB's head, and give him a scepter. Acknowledge the facts: he is the KING of this decaying country.
WHAT ARE YOU GUYS TALKING ABOUT?
MARGIN IS SLIGHTLY LOWER DUE TO WEATHER AND JAPAN EARTHQUAKE!!
QE3 IS ON ITS WAY!
BTFD!!~~~~~
If you think the FE_D is going to let AMZN slip to take the market down you are a fool.
At least not until some little white lies are told tomorrow.
POMO-AH is stepping in .........................
LOL
Margin? Who gives a fuck. Whats a margin?
Anyone see the latest Barron's Big Money Poll? Bulls outnumber bears about 3.5 to 1.
AT 4:1 we'll see the ingredients for some "ledge diving". It'll be all the craze this decade on Wall St.
100 oz of silver says the ES E-mini futures will be dutifully pumped for a green open tomorrow. All systems go!
When are they not?
more bull news from the WH press office (AP)
AP survey: Only oil shock can stop economy now
http://www.ajc.com/business/ap-survey-only-oil-925453.html
*wow* its amazing ....not amazon :0)
you still live in the propaganda machine like the east part of europe in the 80"s.
it seems it works the same as in a socialist system.....#not#....you are done.
I blame the carry trade..............so does AMZN :)
Those damn foreign exchange rates are crippling my business....lol
Johnny Neutron with a follow on!
People relax. Netflix was not down after hours too much yesterday and today got smacked.
Amazon will be down 20-30 bucks tomorrow.
Oil and other commods, bonds and equities can all only rise from here.
It's the new carry trade. Buy equities, commodities, bonds, greek debt, and even puts - you'll make money in every category. Puts will rise along with equity values. ;-)
Down a whole +1.84
From the dimwit kindergarteners at CNBS re. AMZN: "Really, it's a story of revenues being much stronger than we were expecting but expenses coming in heavier than anticipated," said Ken Sena, analyst at Evercore Partners. "The concern that people had, that they were going to spend more than the Street was expecting, happened."
"But when you look at the kind of growth acceleration they are showing on the top line and surpassing pretty much all Street expectations, I think that clearly what they are doing makes sense," he continued. "So we continue to be "outperform" on the stock and think the stock is going to work well. But it is requiring a little bit of patience."
Patience! Give me fucking momo now!
The money's really rolling in much better recovery beetches but on the other hand it's rolling out to suppliers like you never seen all good baby buy buy buy don't fuck with silver that shit is fundamentally flawed.....
Dump all paper they are all going to crash like a moon rocket attempt from Belize.
momo is strongest in the equity world. equity investors are a truly special breed. like herpes. they'll never ever stop being a retarded annoyance. and they'll always carry that badge of honor around with them at cocktail parties : you have herpes?? you're an equity investor ??? well just give me a shot and tell me when you're not in season and i'll invest!!
AMZN is to big to drop...Ben won't let it...look at the POMO's buying this POS
I literally had a heart attack when I read that.
-Your English Language Police
You seem to be recovering nicely.
We all know this is a ponzi, but let's look at it for what it is in the big scene:
The reality is so far gone from this market, it won't go down. Why?
Because a big miss means guaranteed QE3 on the horizon and that equals higher stocks
Because a big beat means earnings are improving and that equals higher stocks
Because all of this equals no one wants treasuries they want stocks equals higher stocks and low yields....
Higher dollar equals higher stocks
Lower dollar equals higher stocks
Who else doesn't see this? As much as it stinks and reaps of ponzi, this is what is has become. So invest accrodingly..........I told you Benny wants 1500 S&P by June and he is going to get it one way or the other.
This market is like riding a fat chick, you slap it and ride the wave until it stops, and Benny has one hell of a tsunami working right now. 99% if stock trades are done on emotion, not fundamentals. Backwards as heck, but that is the world we now live it seems....
after insertion of this thought process how can any of us possibly say no to "media event" tomorrow???!!!! a "Trumpian" YEAH, it was that good! moment from the Bernank too?
It's not an investors market it's a traders market, and when the music stops...there will be fewer traders left.
Professor Rigobon's financial search engine could have seen this coming and we could have front run everyone if we had it fully functioning.
The crazy thing is that they were announcing on the radio news on the half hour here in Louisville that Amazon is hiring at locations in Louisville and all the other places they got here, manager jobs. It sounded like they are expanding operations, it was like one of those Sundayyyyyy at Union Grove Dragway or whatever you used to hear on AM. In other words hyped up.
So let me ask a stupid question that came to my foolish mind.
How in Gods name are they going to re-inject price discovery back into the market.
The only answer I came up with was.....They can't. So's I ask's myself this question.......self, will they continue with the QE..........self says they have to whether they announce it or not.
It's simple math...........No ? Where is methman to check my calculations because those captchas are killin me.
I love it. AND "the Year of Living Dangerously" too!
Still one of the greatest stocks in history....
I enjoy your trolling.
Trolling? I dont think so.
http://www.zerohedge.com/article/buy-stocks-buy-bonds-carry-orgy-leads-b...
Robo is telling it like itiz
I guess the chart doesn't back to December 1999....
Why? You still holding?
Nope
this is getting ridiculous, enjoy the ride I suppose.
i think i just did.
The stock is up 0.67% in AH.
Must have been good earnings!!!!
1.01 % now.
Must have been a great earnings report!
Dear all,
I will brainwash you all by keeping the market afloat until words like "down" "crash" "timber" are erased from all dictionaries and spell checkers.
Sincerely,
Ben.
This is good news, gentlemen!! They could have reported a bankruptcy and been down about 3% after hours.
The real killer is the intraday chart that preceded the AH session: as if the bad news might NOT have leaked!
No jobbies no shoppies.
Amazon always one of the harder stocks to short with the low float and Bill Miller constantly killing shorts.
Best short in tech space is SAP. 80 billion dollar dinosaur tech company that is living off of maitnenance fees.
And the punctuation mark on the end of a surreal day...
http://www.nytimes.com/2011/04/27/business/27markets.html?partner=rss&emc=rss
"The market’s continued rebound is crucial to luring nervous Americans back into investing in stocks, said Alan Gayle, senior investment strategist at RidgeWorth Investments in Richmond, Va. ..."
So all the Boomers who hadn't stuck their toes back in the water yet are about to start cannonballing back in? I'm sure this will all end well...
Tomorrow is going to be huge, up a lot - everyone knows Ben has great news to deliver!
Nice! Amazon has inspired a VERY large purchase of paper to make my own books. Man I love America!
"shits the bed?"
tres colorful.
The facts speak for themselves... Amazon is trading on revenues and 'hopium'.
Ma & Pa are not in the market anymore (except via their investment fund vehicles) because casual private investors cannot afford to live on the dividends most of these shares are, or are expected to provide.
With the abscence of private investors, the market no longer works via the original rules of price discovery and 'fair value', instead, we have a market which trades like a game of TopTrumps where brokers shuffle their decks, call out a stat, and to the victor goes the spoils...
Actually, I think I will licence a TopTrumps share deck, just for this purpose, it will be interesting to see how many of the S&P 500 companies will still be in existence in 10 years time... I had a share trading table top game back in 1985, not many survivors from that haha
Booksellers...
Borders US going, Borders Australia going, Borders UK GONE.
Amazon ???
Is in stiff competition with Book Depository.
BEZOS !!!!!!!!!!!!!!!!!!!!!!!!!!1
Having been dumb enough to try shorting AMZN last year, I would not touch it with a 10 foot pole nor a 6'3" Nigerian...AMZN is the poster child for our sick market...the lunacy is fully priced in.
Of course since everything they sell is imported there is going to be ever increasing margin pressure coupled with declining sales as the gasoline price takes its bite....expect the stock to go up on that basis and you'll make money on it.
Amazon is down 6% ah and will be down big tomorrow.
Robotrader condemns yet another relative, his mother this time, to her remaining days eating cat & dog food, because he is a MoMo whore chaser, and needs to compensate for his losses by depraved acts, including ruining his mother's financial situation.
Amazon ec2 outage.
http://www.fohguild.org/forums/attachments/screenshots/169672d1303717686...