Amazon Bloodbath After Hours As Suddenly "Earnings Matter" Once Again

Tyler Durden's picture

After defying gravity for months on end, on what we quarter after quarter warned were ever declining margins and revenue growth, the Amazon bubble (just about 300x P/E at last check) has finally popped, and investors no longer believe that the company can offset collapsing profit margins with increasing volume. And yes, the Kindle is proving to be nothing more than yet another fad rather than the latest and greatest razor-razorblade ecosystem paradigm.

Highlights from the release:

  • AMAZON.COM 3Q REV. $13.81B, EST. $13.92B
  • AMZN SEES 4Q SALES $20.25B-$22.75B, EST. $22.82B   

And here is the updated chart of the firm's Operating and Net Income. No commentary necessary

And this time, with short sellers long gone after having been crushed by the Chairman time after time, there is nobody to squeeze after yet another horrible quarter.

AMZN dropped to 5-month lows...

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wcvarones's picture

Check out a bunch of prints down $8 exactly at the close 16:00:00 -- did someone have advance word or are those post-announcement trades with bad time stamps?

TruthInSunshine's picture

Bernanke just announced at an emergency meeting of the FOMC that the Fed will buy 10 billion in Kindle Fires monthly on an open-ended timeline.

flacon's picture

As for Pandora:


Pandora Shares Trip Circuit Breakers After Report of Apple Radio Service

flacon's picture

Shit's gettin' real on the NASDAQ (QQQ) in the after hours. Look at that motherfather

Stackers's picture

No worries, black friday is just around the corner.

They will be able to sell tons of stuff for a loss that weekend

The Alarmist's picture

Jeff Bezos is legendary for a letter he allegedly sent to a major consultancy with the line "profits are for pussies."

What goes around ....

azzhatter's picture

is this before or after he buys 10 billion mini ipads?

LongSoupLine's picture

"Fuck the Kindles!!!" - W.. Dudley

TruthInSunshine's picture

Stay tuned for further FOMC announcements regarding potential QEaapl products, depending on earnings.

The trend is your friend's picture

"so if we buy aapl and amzn products like the ipad and kindle fire directly from these companies boosting their bottom line then their earnings will improve and their stocks will go up making other people feel good about thier 401k's so they will go out and buy ipad's and kindle fires creating demand thus start a hiring spree in china  i mean in the US."

Ben Shalom Bernanke

TruthInSunshine's picture

That was sooo virtuously circular!!!

Oh Ben Bubbles, you're my hero!!!


Emergency FOMC meeting convened by Bernank/Dudley just concluded; Both Amazon & Apple will be granted Primary Dealer status by the Fed, and can also now exchange surplus iPads or Kindle Fires at par value for Treasuries of any duration.

iPads and Kindle Fires are also now legal currency for all debt, public or private.

That is all.

---End Transmission--

Mark Carney's picture

So I guess a 1.2% operating margin is NOT sustainable.......hhmmmmm

Buck Johnson's picture

Things are falling apart, the market can't keep the game going anymore.

slaughterer's picture

Y/Y revenue growth was at the top end of company guidance.  

fireangelmaverick's picture

Well fuck you guys I am buying this DIP....SHIT.



fonzannoon's picture

Somebody is buying it. Shit it's heading green.

Unprepared's picture

The Amazonian forest caught Fire?

Tijuana Donkey Show's picture

If an APPL tree falls in the AMZN, does a hedge fund make a sound?

pragmatic hobo's picture

if it holds as is, AMZN will drop below 200 MA tomorrow.

Conman's picture

Already BTFD'er coming in. Looks like Green by open tomorrow?

Cdad's picture

...and it has already recaptured half of that reaction true mindless AMZN style.  

Pantafulius's picture

And.....its almost green.

slaughterer's picture

Wait until the confederation of Amazon-loving Wall Street analysts spin this earnings.   

1fortheroad's picture

Better than expected??

devo's picture

I've shorted this thing 4 quarters in a row. Haven't made much because despite missing it never drops. Starting using options, but I doubt I'll get enough delta to make a profit yet again. Fuck this stock it should be $30

Bam_Man's picture

Not even.

In a sane market, maybe $10-$12 a share.

slaughterer's picture

I gave up shorting AMZN earnings a few quarters ago.    the bad fundamentals did not seem to have much effect on the share price.  

Cdad's picture

I picked up for you...sold it above $224 in the AH.  That was a complete disaster qtr.  Don't think the market will ignore it this time.

indianajohns04's picture

Had AAPL and AMZN shorted @ the beginning of September had to go through the highs and the QE was happy to close them out close to frustrating. I'm just going to short 3X leveraged ETF's from here on out. 

JPM Hater001's picture

"I gave up shorting AMZN earnings a few quarters ago."

It was a fog-shrouded morning, July 4, 1952, when a young woman named Florence Chadwick waded into the water off Catalina Island. She intended to swim the channel from the island to the California coast. Long-distance swimming was not new to her; she had been the first woman to swim the English Channel in both directions.

The water was numbing cold that day. The fog was so thick she could hardly see the boats in her party. Several times sharks had to be driven away with rifle fire. She swam more than 15 hours before she asked to be taken out of the water. Her trainer tried to encourage her to swim on since they were so close to land, but when Florence looked, all she saw was fog. So she quit. . . only one-mile from her goal.

Bam_Man's picture

Better than the "whisper number". BTFD. A $225 stock with no earnings, no dividend - but who cares?

devo's picture

One day it is going to grow into that multiple!


The Axe's picture

Not the holy amzn     rubber balll bullshit   


slaughterer's picture

Wait, down 2% is a "bloodbath"?

jerry_theking_lawler's picture

finger 'prick'? you know they are practically giving away those diabetes test kits now.....

slaughterer's picture

If I see GREEN in AH on this earnings report... 

I Am Not a Copper Top's picture

Stay away from the sharp knives, booze might help

JPM Hater001's picture

yeah, I was just a tad worried about my shorts with the market levitation we saw today.

I'm cool now.

Mad Mohel's picture

Misleading title, here I thought it was going to be about the menstral cycles of unusually large women. Two thumbs down.

JPM Hater001's picture

and I rarely down a comment...

JPM Hater001's picture

Downing my down comment of your comment is like having sex with your best friends mom and posting the pictures on Facebook.

Pretty clear you were wrong from the start.

I'll apologize if we get to 3...unlikely.

Mad Mohel's picture

Actually I didn't down you till now ya bag o douche.

semperfi's picture

Coordinated sell-off to get Romney elected.  C'mon man.

JPM Hater001's picture

Watching a giant building collapse in on itself is always mesmerizing...

Even more so when that building in Amazon.