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...