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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:

  • AMZN 3Q LOSS PER SHR 60C ON 37C LIVINGSOCIAL LOSS; EST. LOSS 8C 
  • AMAZON.COM 3Q REV. $13.81B, EST. $13.92B
  • AMZN SEES 4Q OPER LOSS $490M-PROFIT $310M, EST.PROFIT $354.1M 
  • AMZN SEES 4Q SALES $20.25B-$22.75B, EST. $22.82B   
  • AMAZON $299 KINDLE FIRE HD 8.9” SHIPS NOV. 20

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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Thu, 10/25/2012 - 16:19 | 2919554 wcvarones
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?

Thu, 10/25/2012 - 16:22 | 2919566 TruthInSunshine
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.

Thu, 10/25/2012 - 16:23 | 2919570 flacon
flacon's picture

As for Pandora:

 

Pandora Shares Trip Circuit Breakers After Report of Apple Radio Service

http://tinyurl.com/d35bkje

Thu, 10/25/2012 - 16:35 | 2919615 flacon
flacon's picture

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

Thu, 10/25/2012 - 16:57 | 2919754 Stackers
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

Thu, 10/25/2012 - 19:19 | 2920139 The Alarmist
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 ....

Thu, 10/25/2012 - 16:27 | 2919586 azzhatter
azzhatter's picture

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

Thu, 10/25/2012 - 16:31 | 2919600 LongSoupLine
LongSoupLine's picture

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

Thu, 10/25/2012 - 16:53 | 2919713 sotto
sotto's picture

Hmmm, maybe thats why he is stepping down in 2014?

http://economiccollapsenews.com/2012/10/24/will-fed-chairman-ben-bernank...

Thu, 10/25/2012 - 16:23 | 2919567 TruthInSunshine
TruthInSunshine's picture

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

Thu, 10/25/2012 - 16:31 | 2919597 The trend is yo...
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

Thu, 10/25/2012 - 16:40 | 2919611 TruthInSunshine
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--

Thu, 10/25/2012 - 16:22 | 2919568 Mark Carney
Mark Carney's picture

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

Thu, 10/25/2012 - 20:09 | 2920244 Buck Johnson
Buck Johnson's picture

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

Thu, 10/25/2012 - 16:19 | 2919555 slaughterer
slaughterer's picture

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

Thu, 10/25/2012 - 16:19 | 2919556 fireangelmaverick
fireangelmaverick's picture

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

 

 

Thu, 10/25/2012 - 16:20 | 2919558 fonzannoon
fonzannoon's picture

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

Thu, 10/25/2012 - 16:31 | 2919602 FuzzyDunlop21
FuzzyDunlop21's picture

Bullish

Thu, 10/25/2012 - 16:20 | 2919559 Unprepared
Unprepared's picture

The Amazonian forest caught Fire?

Thu, 10/25/2012 - 18:22 | 2920024 Tijuana Donkey Show
Tijuana Donkey Show's picture

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

Thu, 10/25/2012 - 16:20 | 2919560 pragmatic hobo
pragmatic hobo's picture

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

Thu, 10/25/2012 - 16:21 | 2919562 Conman
Conman's picture

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

Thu, 10/25/2012 - 16:21 | 2919563 Cdad
Cdad's picture

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

Thu, 10/25/2012 - 16:23 | 2919569 Pantafulius
Pantafulius's picture

And.....its almost green.

Thu, 10/25/2012 - 16:23 | 2919571 slaughterer
slaughterer's picture

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

Thu, 10/25/2012 - 16:25 | 2919577 1fortheroad
1fortheroad's picture

Better than expected??

Thu, 10/25/2012 - 16:26 | 2919581 devo
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

Thu, 10/25/2012 - 16:30 | 2919593 Bam_Man
Bam_Man's picture

Not even.

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

Thu, 10/25/2012 - 16:29 | 2919594 slaughterer
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.  

Thu, 10/25/2012 - 16:42 | 2919658 Cdad
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.

Thu, 10/25/2012 - 17:07 | 2919805 indianajohns04
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 even...so frustrating. I'm just going to short 3X leveraged ETF's from here on out. 

Thu, 10/25/2012 - 16:58 | 2919761 JPM Hater001
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.

Thu, 10/25/2012 - 16:27 | 2919588 Bam_Man
Bam_Man's picture

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

Thu, 10/25/2012 - 16:30 | 2919596 devo
devo's picture

One day it is going to grow into that multiple!

 

Thu, 10/25/2012 - 16:27 | 2919589 The Axe
The Axe's picture

Not the holy amzn     rubber balll bullshit   

 

Thu, 10/25/2012 - 16:29 | 2919592 spastic_colon
spastic_colon's picture

priced in!

Thu, 10/25/2012 - 16:30 | 2919598 slaughterer
slaughterer's picture

Wait, down 2% is a "bloodbath"?

Thu, 10/25/2012 - 16:33 | 2919607 LouisDega
LouisDega's picture

More like a blood cup

Thu, 10/25/2012 - 16:39 | 2919642 lunaticfringe
lunaticfringe's picture

Blood shotglass

Thu, 10/25/2012 - 22:24 | 2920498 jerry_theking_lawler
jerry_theking_lawler's picture

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

Thu, 10/25/2012 - 16:31 | 2919601 slaughterer
slaughterer's picture

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

Thu, 10/25/2012 - 16:39 | 2919646 I Am Not a Copp...
I Am Not a Copper Top's picture

Stay away from the sharp knives, booze might help

Thu, 10/25/2012 - 16:56 | 2919744 JPM Hater001
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.

Thu, 10/25/2012 - 16:38 | 2919639 Mad Mohel
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.

Thu, 10/25/2012 - 16:55 | 2919733 JPM Hater001
JPM Hater001's picture

and I rarely down a comment...

Thu, 10/25/2012 - 18:13 | 2919990 JPM Hater001
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.

Thu, 10/25/2012 - 23:26 | 2920591 Mad Mohel
Mad Mohel's picture

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

Thu, 10/25/2012 - 16:43 | 2919663 semperfi
semperfi's picture

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

Thu, 10/25/2012 - 16:54 | 2919729 JPM Hater001
JPM Hater001's picture

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

Even more so when that building in Amazon.

Thu, 10/25/2012 - 16:55 | 2919736 Cone of Uncertainty
Cone of Uncertainty's picture

Some bloodbath its off 2.5%

 

WTF?

Thu, 10/25/2012 - 17:17 | 2919843 Dapper Dan
Dapper Dan's picture

yes, and there isn't actually any blood either.

 

Thu, 10/25/2012 - 22:18 | 2920487 icanhasbailout
icanhasbailout's picture

if anyone tries to give me a bath, there will be

 

Thu, 10/25/2012 - 17:22 | 2919866 Cone of Uncertainty
Cone of Uncertainty's picture

I can see why people downvoted me, I gave the wrong info, it's down only 1%, my bad you dumb fucking muppet bitches.

Thu, 10/25/2012 - 17:28 | 2919886 poldark
poldark's picture

1.1% is the closing price. ZH is talking about after hours trading.

Thu, 10/25/2012 - 18:37 | 2920049 Cone of Uncertainty
Cone of Uncertainty's picture

No shit sherlock.

http://data.cnbc.com/quotes/AMZN

It's down -.8%

That is point, eight percent.

Ahhhahaahah, BLOOOOODBATH...

Fucking donkeys around here I swear, worse than a bunch of Level I CFA candidate back office monkeys.

Thu, 10/25/2012 - 17:00 | 2919777 Quinvarius
Quinvarius's picture

And then suddenly, the earning don't matter again.  The QE and ZIRP matter.

Thu, 10/25/2012 - 19:12 | 2920119 Catflappo
Catflappo's picture

Stock got down to $206ish at 4.10 then trickled up to $208 a minute or two later and then - I swear I saw it - flashed a trade at $228 (how, I don't know) - and suddenly the algos were in and it ended up where it did - only down a small amount.

 

incidentally, last quarter the stock sold off 7% AH and actually ended up rallying (overall) the following day.

 

Stay short....  there is no business here - and every quarter that goes by makes it more and more glaringly obvious.   

Thu, 10/25/2012 - 21:32 | 2920386 ZFiNX
ZFiNX's picture

This might usually be the time to start shorting. But the market has faith in Bernank, I expect a rebound off 13,000.

Thu, 10/25/2012 - 21:33 | 2920388 Cosimo de Medici
Cosimo de Medici's picture

Sales are a loss leader for Amazon. At least that is what the market seems to believe. Apparently the idea is that eventually every consumer goods seller in the economy will be wholesale to Amazon's retail sales network.  Indeed, many stores today exist merely to allow consumers to get hands on a product before buying it from Amazon (Best Buy is the model).  Someday.....someday Amazon will be able to capture margins.  Lots of money rests on that still unproven theory.

Thu, 10/25/2012 - 22:20 | 2920491 SillySalesmanQu...
SillySalesmanQuestion's picture

NO SHORTING ALLOWED...EVER!!!! Ben Shalom Bernanke said so...Fuck You Bernanke!

Thu, 10/25/2012 - 22:22 | 2920495 max bucket
max bucket's picture

I do need more stuff but I don't really want to pay for it

The shopkeepers dilemma, on-line and bricks and mortar

Fri, 10/26/2012 - 00:47 | 2920684 Tapeworm
Tapeworm's picture

And yes, the Kindle is proving to be nothing more than yet another fad rather than the latest and greatest razor-razorblade ecosystem paradigm.

 Har, that is an opening for a gratuitous off topic post on razors. Somehow I got a Schick three blade disposable (Schick Extreme 3)(thus ruining the ecosystem from not recycling properly, which I really do) razor. The thing is outstandingly good even after seven weeks of use. Even at that many uses it still will shave well without anything but a water wet of the face. I do not know whether Schick is a public stock company or anything about it, but it is a fantastically good Merkin made product. No disposable comes remotely close to the performance of this product.

 The economy available from a disposable is something new when compared to all other brands and types. If it is a publicly traded company it will get a huge kick from this product if enough people try them.

 I found this: The razor company is today owned by Energizer Holdings, Inc., so this product is diluted by battery sales.

 Sorry for being so off-topic, but there was a reference to rsazor blades and the ecology of that business. and I wanted to call attention to a fantastically good product.

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