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Amazon Misses, Growth Slows, Guides Lower, P/E Goes Negative And Stock Soars

Tyler Durden's picture





 

The most cartoonish stock of all time just came out with results that can only be characterized as WTF. To wit:

  • Q4 revenue of $21.27 billion missed expectations of $22.23 billion
  • Q1 EPS of $0.21 missed expectations of $0.27;
  • The firm guided top-line lower, seeing Q1 sales of $15-$16 billion, below the estimate of $16.5 billion
  • The firm guided operating income much lower, seeing Q1 op income of ($285)-$65 Million on expectations of $261.4 MM
  • The firm said the its physical books sales had the lowest growth in 17 years
  • Total employees grew by 7,000 in the quarter and 32,200 Y/Y to a record 88,400
  • Worldwide net sales Y/Y growth was the slowest in years at 23%, down from 30% in Q3 and 34% a year ago
  • And, last and certainly least, LTM Net Income is now officially negative, or ($49) meaning as of this moment the firm with the idiotically high PE has an even more idiotic N/M PE.

... And the stock is soaring in the after hours. Thank you DE Shaw, or actually that is Mr. Bezos who should thank you for the latest AH favor where accelerated HFT buying creates the impression that the numbers were good. They weren't.

Some of the charts accompanying this farce.

Total Employees and Worldwide net sales growth:

Operating and Net Income

LTM Operating Income Margin %

Operating Income Margin % by Quarter

AMZN Free Cash Flow as defined: EBITDA - CapEx

And LTM Net Income

Which means Market Cap to Net Income, or P/E, is now negative, or as it is better known in the industry: N/M.

And now ignore reality: after all the thesis is that the more AMZN loses, the more of its competitors will supposedly go out of business, and greater AMZN's pricing power eventually.

Just not yet.

 


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Tue, 01/29/2013 - 17:26 | Link to Comment Water Is Wet
Water Is Wet's picture

This is what winning feels like.  Welcome to the "No P/E" club Amazon!

Tue, 01/29/2013 - 17:26 | Link to Comment camaro68ss
camaro68ss's picture

WTF!!!!!

Im in a F***ing MAD HOUSE!

Tue, 01/29/2013 - 17:33 | Link to Comment Pool Shark
Pool Shark's picture

 

 

"We first had to destroy the company... in order to save the company..."

 

 

Tue, 01/29/2013 - 17:35 | Link to Comment fourchan
fourchan's picture

this ah action is like two algos fucking a football.

Tue, 01/29/2013 - 17:48 | Link to Comment Divided States ...
Divided States of America's picture

If i were an investment banking analyst, this would be my favorite stock to cover because I just slap on a STRONG BUY rating and basically ratchet up the Target Price 20 bucks every quarterly earnings report is announced.

No need to look at financials, ratios or metrics....nothing...the analytical work on AMZN entails just browsing the amazon.com site and seeing whats the 'deal of the day' is.

Tue, 01/29/2013 - 18:44 | Link to Comment NotApplicable
NotApplicable's picture

Best worst news, EVAR!

Tue, 01/29/2013 - 19:04 | Link to Comment CPL
CPL's picture

Hooray!  Burn Rate FTW!  Which would be a great thing for a start up fucking around with VC money...

Except it's publicly traded with pension money, most large portfolios and Algos flipping it.

Tue, 01/29/2013 - 19:16 | Link to Comment James_Cole
James_Cole's picture

These are GREAT numbers! As is traditional with Amazon, the more earnings drops the higher the stock climbs.

Based on these stellar numbers we can look forward to $400 Amzn in the near future! I'm just crossing my fingers they can do even worse when reporting q2, potential $1000 stock if they get down to 5c. Bezos has my full confidence. 

Wed, 01/30/2013 - 02:12 | Link to Comment Rathmullan
Rathmullan's picture

Well why wouldn't it soar. I mean afterall, you're only talking about about 167 times 2013's earnings estimate which has a range wide enough to drive mayez bloombergersteinsky's ego thru (in other words "I duhno). Besides, amzn has only been around for a mere 15 years so its best hyperbolic lies ahead as internet access penetration is only nine percent (or is it ninety percent) of households.

So a no name wanna name chop shop foils bezos's rare "let's pull this bitch out of the stratosphere" moment. That perfectly sums up the market we're in says me.  

Tue, 01/29/2013 - 18:39 | Link to Comment ZippyBananaPants
ZippyBananaPants's picture

Isnt that something how in the last minute they hit all the stop orders to $260 and then its back at 285 after hours? 

Almost like cheating?

Tue, 01/29/2013 - 18:39 | Link to Comment ZippyBananaPants
ZippyBananaPants's picture

Isnt that something how in the last minute they hit all the stop orders to $260 and then its back at 285 after hours? 

Almost like cheating?

Tue, 01/29/2013 - 19:07 | Link to Comment CPL
CPL's picture

And that's why shorting anything or going long on anything is completely and totally insane for anyone that wants to keep their money, status and roof over their heads.

 

Stay out of the pool, it's infected with plague.

Tue, 01/29/2013 - 21:35 | Link to Comment Marge N Call
Marge N Call's picture

+100. THAT was fucking funny! I mean, honestly, who here has never fucked a football? Oh, I mean...nothing.

 

Tue, 01/29/2013 - 21:03 | Link to Comment Buck Johnson
Buck Johnson's picture

Amazon is the online version of Walmart.  When Amazon is having trouble then the rest are having trouble also.  We are  in trouble.

Wed, 01/30/2013 - 01:08 | Link to Comment SokPOTUS
SokPOTUS's picture

well....stop trading with Jim Cramer....

Tue, 01/29/2013 - 17:30 | Link to Comment slaughterer
slaughterer's picture

Imagine if AMZN made even less money, had even lower revenues, and an even lower (negative) margin--then we would be flying above $1,000 by now!

Tue, 01/29/2013 - 17:39 | Link to Comment Cdad
Cdad's picture

When does AMZN start crediting my account when I buy something from them?

Tue, 01/29/2013 - 23:00 | Link to Comment CPL
CPL's picture

EBT

Tue, 01/29/2013 - 18:04 | Link to Comment Squid Vicious
Squid Vicious's picture

Bezos just announced he's selling half his remaining shares to build another spaceship... should see $300/ share tomorrow

Tue, 01/29/2013 - 18:16 | Link to Comment Pure Evil
Pure Evil's picture

Amazon is the new Apple, or was Apple the old Amazon, or is Apple the new/old Amazon.

Oh my, I'm confused now, is it time for my meds?

Tue, 01/29/2013 - 19:03 | Link to Comment EclecticParrot
EclecticParrot's picture

It's actually quite simple in the convoluted world of institutional investing:  one can easily imagine a strong competitor for AAPL (some would say Sammy-sung), while no one can honestly picture, even if we go 78% mobile, a true threat to what AMZN does.  Face-broke?  Nope.  Googly?  Naw.  eeeeBay?  Please!  

For two, perhaps three decades hence, folks will visit their hallowed site first for everything from razor blades (Gillette 7 O'clock blacks or Astras, anyone?) to blenders to collectibles (like a Nick Drake box set on original vinyl).  eBay's "buy now" button can't compete with a list of dozens of "market place sellers" with used versions of any item you want.

So, lazy institution investors and hedgie-wedgies use AAPL to play let's-build-a-big-campfire-in-front-of-a-train, fucking each other with stop runs, VWAP algos, and nod-and-a-wink frothy collusion, while AMZN is a 'core holding' they don't have to ever look at more than once a decade to "trim".

Even so, I believe it is, in fact, time for your meds, for if you visit this site you must be a follower of these ludicrous markets, which have visitors from other planets (the ones who originally seeded Earth with amino acids and other building blocks eons ago) laughing their body parts off (no, they don't really have asses, per say).

Thus, it'll lick 300 tomorrow, then sell off 15%.

 

 

Tue, 01/29/2013 - 19:09 | Link to Comment CPL
CPL's picture

...in thirty years I bet more kids will know how to bridle and saddle a horse than know what an 'internet' is.

Tue, 01/29/2013 - 19:39 | Link to Comment EclecticParrot
EclecticParrot's picture

Given our fiscal trajectory, no one will be able to afford horses at that point.  Plus, real things that move, snort and poop in big heaps (no, not finance ministers) won't appeal to generation YYY.  Instead, they'll just buy the "Horsey" app for 88c.

Wed, 01/30/2013 - 01:12 | Link to Comment SokPOTUS
SokPOTUS's picture

Nah...all the horses will be eaten by then...

Tue, 01/29/2013 - 20:29 | Link to Comment chubbyjjfong
chubbyjjfong's picture

They have that fantastic, inversly proportional, bilateral agreement with Apple.  You scratch my back.. I'll lick your balls.

Tue, 01/29/2013 - 17:34 | Link to Comment Xibalba
Xibalba's picture

don't let facts fool you!

Tue, 01/29/2013 - 18:03 | Link to Comment cynicalskeptic
cynicalskeptic's picture

Listening to Bloomberg and the cable types you'd think that things are great!  really, really GREAT!  

Tue, 01/29/2013 - 17:58 | Link to Comment LongSoupLine
LongSoupLine's picture

What the Fuck...

 

Fuck it...I'm going out and drinking heavy tonight until I shit my pants.

You guys are welcome to fucking join me if you want.

Tue, 01/29/2013 - 18:16 | Link to Comment mirac
mirac's picture

Depends

Tue, 01/29/2013 - 18:17 | Link to Comment graneros
graneros's picture

Ya know as much fun as that sounds, I uh think I'm gonna have to pass.  But hey you have a good time.  You might want to think about hitting the town wearing something like coveralls. +1

Tue, 01/29/2013 - 18:21 | Link to Comment Squid Vicious
Squid Vicious's picture

already accomplished both today without leaving the house.... 

Tue, 01/29/2013 - 19:09 | Link to Comment flacon
flacon's picture

My wife wonders why I start drinking at 9:30:01 AM...

Tue, 01/29/2013 - 19:45 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Party at Jeff Bezos tonight bitchez!

http://www.youtube.com/watch?v=4g3McXcOvvo

Wed, 01/30/2013 - 01:15 | Link to Comment SokPOTUS
SokPOTUS's picture

Some chicks like that.  You might get lucky.

Tue, 01/29/2013 - 19:34 | Link to Comment bobthehorse
bobthehorse's picture

It's crazy.

I'm afraid to do anything with my money.

Fraud is far too rampant.

So I just keep the green in my matress.

http://www.angrysinner.blogspot.kr/2013/01/tuesday_30.html

 

Tue, 01/29/2013 - 17:29 | Link to Comment JustPrintMoreDuh
JustPrintMoreDuh's picture

Bullshit? no Bullish!  Buy MOAR.  #Forward.

Tue, 01/29/2013 - 17:40 | Link to Comment max2205
max2205's picture

Open AH drop to 250 then the tape said margins grew......and poof....290.  

Can you say 2001?

Tue, 01/29/2013 - 17:29 | Link to Comment the not so migh...
the not so mighty maximiza's picture

i love companies that don't make money, i am going all in.

Tue, 01/29/2013 - 17:31 | Link to Comment Sudden Debt
Sudden Debt's picture

damn... there's not enough stock for everybody...

DON'T WORRY!!! THEY'LL JUST ISSUE MORE STOCK!!!

Tue, 01/29/2013 - 17:40 | Link to Comment Cdad
Cdad's picture

Probably.  First, the absolute worst of the worst within the criminal syndicate known as Wall Street need to UPGRADE the stock and RAISE PRICE TARGETS.  That'll be fun to watch.

Tue, 01/29/2013 - 17:29 | Link to Comment Dr. Engali
Dr. Engali's picture

It's all about eyeballs...millions upon millions of eyeballs..Who needs profits when you have eyeballs?

Tue, 01/29/2013 - 17:35 | Link to Comment EscapeKey
EscapeKey's picture

"Impressions"

Tue, 01/29/2013 - 18:03 | Link to Comment Groundhog Day
Groundhog Day's picture

How many hits did you get on the website?

Is Brick and mortar gonna be dead?

OOOPPPS wrong BUBBLE

Tue, 01/29/2013 - 18:16 | Link to Comment Pure Evil
Pure Evil's picture

Well, as long as those millions of eyeballs aren't watching me do nasty things in the bathroom........on second thought!

Tue, 01/29/2013 - 17:32 | Link to Comment EscapeKey
EscapeKey's picture

Clearly, a 50% miss was already priced in.

SHEESH up 11%? Does this madhouse know no borders?

Tue, 01/29/2013 - 17:42 | Link to Comment Cdad
Cdad's picture

Nope...not while the criminal syndicate is in the process of gathering up the world's assets...with all of it being paid for by the depreciation of Average Joe's green back.

Thank you, Ben Bernanke, for this wasteland you have created for us.

Tue, 01/29/2013 - 18:11 | Link to Comment Hedgetard55
Hedgetard55's picture

+55 kajillion, Cdad.

 

Too many financial "experts" do not understand where the purchasing power of newly printed FRNs actually comes from!

Tue, 01/29/2013 - 17:30 | Link to Comment dime2962
dime2962's picture

Must be because of the complete lack of service they provide for the Kindle Fire. A device  they sell so you will buy buy buy everything you need on amazon. 

Tue, 01/29/2013 - 17:30 | Link to Comment SeverinSlade
SeverinSlade's picture

I don't see how anyone can justify going long AMZN at these levels.  Where's robotrader when you need him?

Tue, 01/29/2013 - 17:47 | Link to Comment Midas
Midas's picture

Does that happen?

Tue, 01/29/2013 - 18:30 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

Robo is looking at his AMZN after hours streaming quote screen and is rubbing one out.  Let's just leave him alone for a while..........

Wed, 01/30/2013 - 01:18 | Link to Comment SokPOTUS
SokPOTUS's picture

The dumb bastard is laughing his ass off at all of us right now...

Tue, 01/29/2013 - 17:30 | Link to Comment astoriajoe
astoriajoe's picture

I'm sure the feds pay them nicely for providing lists of what everyone buys.

Wed, 01/30/2013 - 01:20 | Link to Comment SokPOTUS
SokPOTUS's picture

2,176 copies of 'Catcher In the Rye'.  Nothing else.

Tue, 01/29/2013 - 17:31 | Link to Comment Sudden Debt
Sudden Debt's picture

since Harry Potter... people stopped reading books...

Tue, 01/29/2013 - 17:33 | Link to Comment Dr. Engali
Dr. Engali's picture

 Wuts a buuk?

Tue, 01/29/2013 - 17:35 | Link to Comment Sudden Debt
Sudden Debt's picture

those bundeled papers with black and white line drawings that you need to colour with your crayons.
If you can keep in the lines, there's a job waiting for you at McDonalds or Wallstreet!

Tue, 01/29/2013 - 17:31 | Link to Comment lizzy36
lizzy36's picture

19 years and next quarter forecast: negative operating income.

Stock is an eternal mystery. 

How do we do it:WOLUME.

Tue, 01/29/2013 - 17:32 | Link to Comment SeverinSlade
SeverinSlade's picture

Step 1: Steal underpants (using a larger and larger workforce that helps translate into negative net income)
Step 2: -------
Step 3: Profit and a surging stock.

Don't argue with the Amazon gnomes.

Tue, 01/29/2013 - 21:41 | Link to Comment Marge N Call
Marge N Call's picture

Fuck you pussy. With your little pussy P/E calculations. Little pussy investors afraid of losing money for 20 years. Pussy Gnomes.

Tue, 01/29/2013 - 17:32 | Link to Comment slaughterer
slaughterer's picture

I love it: AMZN is the poster child of the Bernanke market and the Obama society.  It epitomizes every aspect of the absurd situation of capital and retail markets.  It is absolutely without peer in the George Constanza world we live in.  

Tue, 01/29/2013 - 17:35 | Link to Comment ziggy59
ziggy59's picture

Bizarro George Constanza

Tue, 01/29/2013 - 17:35 | Link to Comment EscapeKey
EscapeKey's picture

Double bubble stock.

Tue, 01/29/2013 - 19:18 | Link to Comment Whiteshadowmovement
Whiteshadowmovement's picture

Slaughterer I love ya man! Youre one of the few who truly gets itM

Wed, 01/30/2013 - 01:23 | Link to Comment SokPOTUS
SokPOTUS's picture

AMZN is more like that chick Jerry Seinfeld dated that looked hot in poor lighting and scary as hell as soon as you got a look in different light.

Take AMZN out of the club and into the corridor, and eeehhhhhh-hhhhh-hh-hh-hh-hhhhh.

 

Tue, 01/29/2013 - 17:33 | Link to Comment Cursive
Cursive's picture

Up 11% as I type.  UFB.  Impossible.  Uh...I'm speechless.

Tue, 01/29/2013 - 17:33 | Link to Comment Sudden Debt
Sudden Debt's picture

As Amazon is one of the 12 internet hubs, this doesn't bode well for e-commerce in general.

EBAY =>.....

Tue, 01/29/2013 - 17:34 | Link to Comment Conman
Conman's picture

And there is your dot.com bubble 2.0 moment.

Tue, 01/29/2013 - 17:38 | Link to Comment ziggy59
ziggy59's picture

Exactly... Wasnt it AMZN that started the dotcum bubble with Blahgit calling for AMZN 300?

History repeats...

Tue, 01/29/2013 - 21:42 | Link to Comment Marge N Call
Marge N Call's picture

Yep, it repeats, just like shitty pasta salad.

Tue, 01/29/2013 - 18:49 | Link to Comment Osmium
Osmium's picture

Yep.  It's the same thing.  In the .com bubble you had stocks that NEVER had positive earnings soaring to new heights.  JDSU anyone?

Tue, 01/29/2013 - 18:22 | Link to Comment Ham-bone
Ham-bone's picture

Umm...isn't this how most HYPERINFLATIONS progress??? 

QE4EVER really does mean more quantity of money chasing fixed # of assets...regardless of their quality.  Bernank said there will be inflation...Bernank made sure everyone receives no yield and everyone into Risk...Everyday bank excess reserves climb further...everyday that money seems to find it's way into Risk assets...Those w/ the money first benefit the most...

Seem to recall Weimar stock market going vertical.  Funnny thing is hyperinflation seemed to actual acheive a select groups goals in Germany (those w/ capital, land, stocks, PM's, assets abroad) and didn't destroy the country...that's how unmanagable debt was and seemingly is managed. 

It's only the middle class, the poor who are destroyed but thats how unpayable debts are cancelled.  Why can't we simply call a hyperinflationary period a policy goal...it's that obvious.

US has $8+T of short term T debt and Fed owns none of it thanks to Op Twist...if Fed allows rates up on the short end that's $3T+ of 3yr and shorter debt rolling up from current net .25% to .5% or 1% or heaven forbid '07 like 5%...no, no increasing rates.  Just flood the world w/ dollars and drown all debts.

Tue, 01/29/2013 - 17:34 | Link to Comment slaughterer
slaughterer's picture

BEZOS: "PROFIT IS FOR LOSERS LIKE APPLE."  

Tue, 01/29/2013 - 17:43 | Link to Comment in-Credible Banker
in-Credible Banker's picture

+1500 PE

Tue, 01/29/2013 - 18:12 | Link to Comment Ham-bone
Ham-bone's picture

PE showing as +3245???

Tue, 01/29/2013 - 21:43 | Link to Comment Marge N Call
Marge N Call's picture

WINNING!!!

Tue, 01/29/2013 - 17:34 | Link to Comment thismarketisrigged
thismarketisrigged's picture

bernanke owns a ton of amzn, lol;

 

how is this even possible. they missed badly on both the bottom and top line, guidance sucked, this is like the 20 qtr in a row of misses, yet they get rewarded but the stock prob going to 300 on this?

 

i can only imagine what would happen if they actually beat expectations, we would prob say a plus 200,lol.

 

this stuff is so comical, i cant anymore

Tue, 01/29/2013 - 17:39 | Link to Comment Squid Vicious
Squid Vicious's picture

who the fuck is buying this!!!???? just added 30 billion in mkt cap since mid november...

Tue, 01/29/2013 - 18:51 | Link to Comment NotApplicable
NotApplicable's picture

Just everyone's retirement funds. Don't worry, it's cool.

Wed, 01/30/2013 - 01:25 | Link to Comment SokPOTUS
SokPOTUS's picture

Rotation.  It's what happens just before the bottom falls out.  Of Everything.

Tue, 01/29/2013 - 17:35 | Link to Comment JB10
JB10's picture

Bear capitulation

Tue, 01/29/2013 - 17:35 | Link to Comment sitenine
sitenine's picture

Breaking: Amazon beats out both Apple and Facebook for Poster Child of The New Normal. The Bernank is expected to announce that the Fed will begin direct equity purchases of the company later this afternoon!

Tue, 01/29/2013 - 17:35 | Link to Comment Clowns on Acid
Clowns on Acid's picture

Hey Tyler- It could have been worse so....buy buy buy.

Tue, 01/29/2013 - 17:35 | Link to Comment monopoly
monopoly's picture

Unfucking believable. Only on Wall Street can you find this kind of value.

Tue, 01/29/2013 - 17:36 | Link to Comment Frank N. Beans
Frank N. Beans's picture

it's gotta be a knee-jerk

tomorrow it gets slaughtered... finally

Tue, 01/29/2013 - 17:38 | Link to Comment thismarketisrigged
thismarketisrigged's picture

disagree frank n beans. i hope u r right, but i have seen this too often with amzn, qtr after qtr missing badly, yet stock shoots up 7 plus percent. its sickening.

Tue, 01/29/2013 - 17:37 | Link to Comment buzzsaw99
buzzsaw99's picture

AMaZiNg, stUPendouS, rally on bitchez!

Tue, 01/29/2013 - 18:36 | Link to Comment candyman
candyman's picture

Reminds me of McCaw Cellular in the late 80's but only 3,000 x's worse.

Tue, 01/29/2013 - 17:43 | Link to Comment francis_sawyer
francis_sawyer's picture

Was this on the "Conviction Muppet Buy" list? [brought to you by those deeply conscientious ANALysts who work hard for the money]?... 

~~~

You'd better 'treat 'her RIGHT'

http://www.youtube.com/watch?v=4DsNn1NzxJ8

Tue, 01/29/2013 - 17:38 | Link to Comment jubber
jubber's picture

Guess you got to be sick as a dog if you were short, you see those shite figures and think you have made a killing and then discover you just had your arseholle ripped out with barbed wire!

Tue, 01/29/2013 - 17:40 | Link to Comment thismarketisrigged
thismarketisrigged's picture

jubber, i have thought about in the past of shorting amzn, but seeing to often what happens when they miss badly qtr after qtr yet stock still shoots up, its not worth it.

 

this scenario was so predictable, i knew, along with many others prob they were going to miss badly, but somehow the stock soars.

 

i hate appl with a passion, but that company still has phenominal revenue ( 4th most in history behind only oil companies for a qtr) yet that stock drops 12 percent.

 

amzn misses everywhere,and it soars. makes no sense

Tue, 01/29/2013 - 18:55 | Link to Comment NotApplicable
NotApplicable's picture

Apple's time is coming.

(And by that I mean, their stock will soar once they start losing money too.)

Wed, 01/30/2013 - 01:27 | Link to Comment SokPOTUS
SokPOTUS's picture

are you the jubber from market-ticker?

Tue, 01/29/2013 - 17:41 | Link to Comment CaptainSpaulding
CaptainSpaulding's picture

Bezos is da man who gets me my shit .. Thanks Mr. Bozos

Tue, 01/29/2013 - 17:38 | Link to Comment otto skorzeny
otto skorzeny's picture

another puzzler like YAHOO!-what has that dumb whore marissa mayer done to double that POS in the last year?

Tue, 01/29/2013 - 17:41 | Link to Comment Squid Vicious
Squid Vicious's picture

tribal ritual that you'll never be invited to

Wed, 01/30/2013 - 01:27 | Link to Comment SokPOTUS
SokPOTUS's picture

hahahaha!  Nice.

Tue, 01/29/2013 - 17:39 | Link to Comment JB10
JB10's picture

Numbers missed slightly but are still record for Amazon. Guidance weak but Bezos loves to guide low - it's what he does. Stock down nearly 6% today. Just seeing some short covering on thin vol.

Tue, 01/29/2013 - 17:39 | Link to Comment King_Julian
King_Julian's picture

I used to short AMZN in the late 90's. A buddy and I looked at it and said "no way this company makes it. It's a $12 stock." It was somewhere around $120 or so at the time. Lost my ass. I still can't find it.

Tue, 01/29/2013 - 17:40 | Link to Comment ziggy59
ziggy59's picture

Amazon shares jump after quarterly results
Reuters – 12 minutes ago
Algos are reading profit jump headlines..

http://finance.yahoo.com/news/amazon-quarterly-revenue-rose-22-210721902...

Tue, 01/29/2013 - 17:42 | Link to Comment youngman
youngman's picture

This is the new Socialist way.....companies with no profit......you bet the Libs will into that.....

I wonder if you can buy Amazon short stock on Amazon.........??????

Tue, 01/29/2013 - 17:43 | Link to Comment JB10
JB10's picture

No - the algo's sold the stock down 5% on the headline miss. Trader then has to pay up to buy the stock back as he realises numbers were fine.

Tue, 01/29/2013 - 17:45 | Link to Comment unwashedmass
unwashedmass's picture

this might be it. they are reaming the shorts tonight, but tomorrow? I don't know a portfolio manager on the planet --- even the dumbest ones -- that are going to be able to justify holding AMZN, or god forbid, buying more.....

we might be seeing the final greater fools tonight. I say it closes tomorrow under 250

Tue, 01/29/2013 - 17:45 | Link to Comment pragmatic hobo
pragmatic hobo's picture

wait! ... the AMZN misses, guides lower, and stock goes higher? Huh?

Tue, 01/29/2013 - 17:45 | Link to Comment max2205
max2205's picture

This thread sounds like a yahoo board. 

 

Tue, 01/29/2013 - 18:32 | Link to Comment JuliaS
JuliaS's picture

AAPL - expectations matched, lots of cash = 40% crash.

NFLX - profits vanish, earnings drain = 60% gain.

Should've seen this coming.

Tue, 01/29/2013 - 17:47 | Link to Comment LawsofPhysics
LawsofPhysics's picture

All shorts must die before the next major fleecing of the 401k holders.  Banks profitting on the way up and down. 

Tue, 01/29/2013 - 17:47 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Seems like gold and oil will have to get beat back down soon.

Tue, 01/29/2013 - 17:48 | Link to Comment razorthin
razorthin's picture

Still think this market isn't in a bubble?

Tue, 01/29/2013 - 17:51 | Link to Comment JuliaS
JuliaS's picture

This bubble isn't a market.

Tue, 01/29/2013 - 17:54 | Link to Comment khakuda
khakuda's picture

It's not enough.  We need more QE.

Bernanke thinks banks are being too strict giving out credit.  He thinks interest rates, particularly mortgage rates are too high.  He thinks house values are too low.  He thinks stock prices are too low.  He thinks unemployment is too high.  I'm sure he thinks student loans should be cheaper and more readily available.  

It's a good thing HE is smarter than the entire market since HE has control over the printing press.  We will all be saved.

Tue, 01/29/2013 - 17:54 | Link to Comment TrustWho
TrustWho's picture

All of you are just thinking too deeply. All you do is pick the right line in the P&L

Amazon shares rallied 10% to $287 following the company’s report that fourth-quarter operating income — considered a key measure of business performance — came in at $405 million, compared with $260 million a year ago.

From 22(?) year old market analyst... Carla Mozee is a reporter for MarketWatch, based in Los Angeles

Tue, 01/29/2013 - 18:11 | Link to Comment tecno242
tecno242's picture

Target has a Market cap that is 1/4th of AMZN's.. yet they produced 3 billion in Net income available to common last year.

400 million ain't shit for a company valued at 130 billion dollars.

Tue, 01/29/2013 - 18:27 | Link to Comment TrustWho
TrustWho's picture

Ye of little imagination and faith in the new economy supported by Daddy Bernanke and QE4eVa. President Obama wants a FAIR world and this is it. Making money requires paying taxes!

Brick physical structures are so old school and yesterday economics!

Tue, 01/29/2013 - 17:55 | Link to Comment unwashedmass
unwashedmass's picture

 

i don't know about you all, but i find this all terrifying. when this all collapses, its going to be hellfire.

Tue, 01/29/2013 - 17:59 | Link to Comment Rearranging Dec...
Rearranging Deckchairs's picture

I guess they're going to make it up on volume. /sarc

Tue, 01/29/2013 - 18:01 | Link to Comment Rob Jones
Rob Jones's picture

AAPL is dead. Long live AMZN!

Tue, 01/29/2013 - 18:03 | Link to Comment donkshover
donkshover's picture

I got on anti depressants  and counseling today... THIS IS WHY!

Tue, 01/29/2013 - 18:02 | Link to Comment azengrcat
azengrcat's picture

Didn't you hear?  They hired an accountanting firm that specializes in charities.  

Tue, 01/29/2013 - 18:03 | Link to Comment yogibear
yogibear's picture

Bad is good, good is even better.

LOL, It's a pile on strategy until the big money pulls out leaving the bagholders to get crushed.

Tue, 01/29/2013 - 18:05 | Link to Comment NeedleDickTheBu...
NeedleDickTheBugFucker's picture

Imagine what level AMZN shares would be trading at if Henry Blodget was still on the sellside.

Tue, 01/29/2013 - 18:08 | Link to Comment Seasmoke
Seasmoke's picture

and sales tax charges coming soon  !!!!!!

Tue, 01/29/2013 - 18:13 | Link to Comment Simit Patel
Simit Patel's picture

i'll take the contrarian view in this thread. amzn is the real winner of the internet and this will be proven over the next 5 years. the lackluster earnings is due to investment in scalability and other product lines, and while this is usually a bad idea when other companies try it, amzn is the one player who can pull it off. those who dismiss amzn as a low margin company that is perpetually breakeven don't see the massive digital revenue streams that are already in the making. amazon web services will be a billion dollar business easily. 

jobs/apple was the warmup act. bezos/amazon is the real deal. 

a good piece of the move has occurred, but still not too late. hop on and enjoy the ride! :)

Tue, 01/29/2013 - 18:31 | Link to Comment Squid Vicious
Squid Vicious's picture

you realize the mkt cap is currently $130 billion? so if web services is a "billion dollar business" whatever that means, then we still still need to account for a few more billion?

Tue, 01/29/2013 - 20:35 | Link to Comment Simit Patel
Simit Patel's picture

my viewpoint is that amazon's market cap will reach 250 bn over the next 5 years. they moving their business model to high margin digital revenue -- kindle, AWS, marketplace, payments -- and they are absolutely killing it if you judge it on a business model basis. they are reinvesting all the profits into growth which is why the numbers are lackluster. amzn has a committed shareholder base and there is no apple-esque mania. 

a billion dollar business is one that does a billion in revenue a year. AWS will grow well beyond that. margins will be higher than in retail. and this is just one aspect of amazon's business. google did 29 billion in revenue and has a market cap 2X that of amzn --- and growing. amazon's growth trajectory and the inflationary storm that can lift all equities make amzn one of my favorite plays. 

Tue, 01/29/2013 - 19:17 | Link to Comment Wilcat Dafoe
Wilcat Dafoe's picture

I agree, basically.   Some of these people seem to lose the forest for the most recent tree....

Tue, 01/29/2013 - 19:57 | Link to Comment eclectic syncretist
eclectic syncretist's picture

Bezos will never turn a profit with AMZN.  He's just not that kind of guy.

Tue, 01/29/2013 - 20:41 | Link to Comment Simit Patel
Simit Patel's picture

amazon had an EPS of $2.53 in 2010. the next time they turn up the profits, that number will be much bigger. 

Tue, 01/29/2013 - 20:27 | Link to Comment adr
adr's picture

Amazon is the Russian Mafia owned black market dealer in the shady part of town. Some guys you know went there and scored a great deal on a 50" projection set. Paid like $200. But you're afraid because you know it's illegal. Problem is the law says if you buy stolen goods, you're just as guilty as the guy that sold them to you.

HAVE NO FEAR THE INTERNET HIDES ALL THAT!!!

I'm pretty sure the Feds know Amazon sells black market merchandise, but they don't care because Bezos probably floats them all stock. But buyer beware. That 50" Plasma you bought for $500 on Amazon that sells for $1500 at Best Buy wasn't bought through legitimate channels.

I mean if you're fine buying a TV stolen off a cargo ship, more power to you. But don't for one second believe Amazon is a legitimate seller of retail merchandise. Amazon's dirtier than a $10 Albanian whore.

Tue, 01/29/2013 - 20:43 | Link to Comment Simit Patel
Simit Patel's picture

do you have anything resembling proof to support your comment here?

Tue, 01/29/2013 - 18:16 | Link to Comment graneros
graneros's picture

oops

Tue, 01/29/2013 - 18:14 | Link to Comment Darth Mul
Darth Mul's picture

The figures that analysts come up with for their expectations are not unlike the number a young boy expects when he first puts ruler to schlong:   Not much basis for whatever they came up with to begin with, and almost certainly bound for disappointment.

And remember, boys, that sometimes the prettiest girl at the dance, is really just the least revolting.

Has anyone seen japanesebeauties.net on a kindle?  It's like being deep inside a Tokyo makutsu ...which is, itself, deep inside a girls' high school.  

Marvelous stuff - and I can easily buy random shit inbetween tugs.  What's not to love?

Tue, 01/29/2013 - 18:18 | Link to Comment donkshover
donkshover's picture

Dont let them drive you away Simit. This board needs some intelligence lately.

Tue, 01/29/2013 - 18:18 | Link to Comment Dr_Lucid
Dr_Lucid's picture

So going forward we are buying when the news is bad, but not as bad as we thought? 

I used to own a high end sporting goods retail store 5 years ago and have since moved it purely online so I can keep the wholesale accounts for myself ( and my friends).  I could never in a million years compete with Amazon efficiency and pricing.  But the rub is that when some local calls who needs more help in product selection than what he can find online asks,

"...why don't you guys have a retail store?"

I tell them, "... we do, we do in fact and its in the plaza on Route 1 right next to the Amazon store.  You know the one with the fancy storefont that you built brick by brick?  And its ok if you don't know where it is, its easy to find since its across the street from the EBAY store."

 

Tue, 01/29/2013 - 19:00 | Link to Comment IamtheREALmario
IamtheREALmario's picture

Actually price is managed so buying and selling depends on what the price managers do with the price. They generally cover their price manipulation with implausable stories propagated through the complicitand corrupt media and sell-side community.

Tue, 01/29/2013 - 18:29 | Link to Comment Bear
Bear's picture

What 88,400 Amazon employees do?

Tue, 01/29/2013 - 19:00 | Link to Comment IamtheREALmario
IamtheREALmario's picture

I am guessing most unpack and pack boxes in one of their various warehouses.

Tue, 01/29/2013 - 19:04 | Link to Comment ebworthen
ebworthen's picture

Amazon's lower sales wouldn't have anything to do with employment and the economy still being in the shitter, would it?

Or, with California forcing them to charge sales tax?  I mean, higher taxes don't change people's behavior, does it?

Nah!

I'm sure $1 Billion a month of FED purchases of approved economist's books from Amazon will help fix their results and the economy.

Break a window!

Tue, 01/29/2013 - 18:31 | Link to Comment drivenZ
drivenZ's picture

as long as the capex is growth and not maintenance then the FCF doesn't matter much right now. Operating margins are up, Revenues are up. net income is overrated. 

Tue, 01/29/2013 - 18:39 | Link to Comment Squid Vicious
Squid Vicious's picture

Of course revenues are up, the 800 lb gorilla in the room is that their revenue growth rate is slowing rather dramatically ... which will not support the current valuation, only question is when this sinks in

Tue, 01/29/2013 - 18:52 | Link to Comment drivenZ
drivenZ's picture

i dont think anyone's modeling out 30% growth every year to infinity. 23% in one quarter does not a trend make. will have to wait and see if the capex spend translates to stablisation or increasing revenue growth. 

Tue, 01/29/2013 - 19:57 | Link to Comment Squid Vicious
Squid Vicious's picture

22% growth last q, 20% or so in 1Q 2013 based on today's guidance ... the law of large numbers is a bitch... see AAPL

Tue, 01/29/2013 - 18:36 | Link to Comment css1971
css1971's picture

Do NOT. Fuck with Amazon.

 

They have powerful friends.

 

Tue, 01/29/2013 - 18:37 | Link to Comment markar
markar's picture

Tyler I suspect if you analyzed who owns this stock and in what percentages you'd have your answer as to why it trades in the twilight zone.

Tue, 01/29/2013 - 18:39 | Link to Comment venturen
venturen's picture

Maybe they could annouces their number in Zimbabwe dollar or Japanese yen to make the number seem bigger... Or Big Ben could buy their products with printed money and stock pile the good just like MBS.

Tue, 01/29/2013 - 18:40 | Link to Comment hardcleareye
hardcleareye's picture

Well with headlines like this......

"Amazon Rises After Reporting Widening North American Margin"

I had to go through and compare ZH take to Bloomberg...

http://www.bloomberg.com/news/2013-01-29/amazon-revenue-rises-22-percent...

I just don't know what to say..... other than we are soooo screwed...

Tue, 01/29/2013 - 18:40 | Link to Comment electricgorilla
electricgorilla's picture

so amazon was down like 3% but then close at like 5%. Some odd 1 second price change before close. Then it fell down tough to like 250 before rallying to the 280's area. Somebody is wiping out alot of positions. We go lower from her starting tmrw. This may have marked the end of the Amazon bubble in my opinion. Will see.

Tue, 01/29/2013 - 18:50 | Link to Comment Dr_Lucid
Dr_Lucid's picture

Good point.  I've noticed the same pattern on a few other names.  Just look at a 5 day chart to catch the lower lows, yet nobody seems to talk abou them.

Tue, 01/29/2013 - 19:00 | Link to Comment Aurora Ex Machina
Aurora Ex Machina's picture

Anyone surprised by this news should do the following:

1) Quit & retire to a nice island.

2) Take up Philosophy, starting with Plato's Cave.

 

That is all.

I've repeatedly told you why AMZN cannot fail (do a GREP); all you have to learn is that this isn't about economics any more.

 

It's about the future. Quite a dynamic and resilient company, it has proven, no?

Tue, 01/29/2013 - 19:15 | Link to Comment ebworthen
ebworthen's picture

"Magical Mystery Tour"

Aye.

Full album, thanks for that, listening now.

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