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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 - 18:57 | Link to Comment IamtheREALmario
IamtheREALmario's picture

Ain't managed markets glorious? I think there may still be a few people living under rocks and such who do not understand what a scam the markets are. There are the totally ignorant who do not even understand what a good company when compared to a poor company ... and then there are the people who just cannot get over the fact that stock price has no relationship to the fundamental worth of the company... and that what appears to be an inverse relationship to free market dynamics is just fraud with a story propagated through the captured media. Lies, lies and more lies.

Tue, 01/29/2013 - 19:02 | Link to Comment Catflappo
Catflappo's picture

Iin the earnings conference call, not a single analyst asked a question pertaining to financial aspects of Amazon's performance.   

That tells you everything you need to know about why the stock is in la-la-land.

 

 

Tue, 01/29/2013 - 19:05 | Link to Comment amadeusb4
amadeusb4's picture

Now I understand why AAPL stock got clobbered. RECORD PROFITS!

Tue, 01/29/2013 - 19:09 | Link to Comment amadeusb4
amadeusb4's picture

Were people placing AMZN sells and VMW sell orders were actually being executed? Then perhaps they're simply trying to buy VMW and getting AMZN shares instead? Serously, I need to exit this market.

Tue, 01/29/2013 - 19:11 | Link to Comment kill switch
kill switch's picture

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

Who gives a fuck!!! 70% GDP= Consumption,,,, terrific!! 30,000 drones, who cares, because Amazon did not meet.... is BS.. Syrian gas approved by Washington!!! Not news!!! Sandy Hook parent heckled  a complete lie,,,,the usual suspects,,,CNN,HUF POST,ABC....

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

Dunno what DC approved in Syria, but Syria surely is about gas pipelines....  making Europe less dependent on Russian Gas while feeding Israel.

 

Unless it's really about freedom.  Shit, maybe we're all just jaded, and it's really about freedom.

Tue, 01/29/2013 - 19:14 | Link to Comment Wilcat Dafoe
Wilcat Dafoe's picture

Would anyone who has at least skimmed the biz headlines over the past 5 years, let alone read Matt Taibi, not suspect that, at a minimum, Goldman Sachs {and a handful of other banks and funds, etc.} are banging the table so often there's nothing like a straight shot?

Probably I'm making an oft made point - when you don't prosecute anyone, and there's so much obvious computer rigging in addition to old fashioned inside info... there's no clear linkage between relative performance and value.

 

What's the least corrupt area for investment?   From what little I understand of 'economics' - the price of gold should be much much higher, but it ain't, and Krugman still has his column... so should I be burying my silverware in the backyard, or buying shares in the large and evil banks?

 

Tue, 01/29/2013 - 19:24 | Link to Comment SmoothCoolSmoke
SmoothCoolSmoke's picture

Cue Prince: "Tonight we're gonna party like it's........."

Tue, 01/29/2013 - 19:30 | Link to Comment SAT 800
SAT 800's picture

Income is income; they had a lot. added employees is added employees. In an environment of contraction and a dubious future; this looks good to stock speculators; it's a rational decision; markets always overshoot; but Amazon is functioning and making money and therefore there's a reason to have a position in the company.

Tue, 01/29/2013 - 19:33 | Link to Comment gould's fisker
gould's fisker's picture

Quaint ideas like moral hazard have been repeated until forgotten--after all, if you can always get moar cash why worry about losers, and then losers can continue their losing ways; God Bezos has made a mega career of this--once he takes over all world retail outlets then he can really profit.

Tue, 01/29/2013 - 20:08 | Link to Comment luna_man
luna_man's picture

 

 

"P/E Goes Negative And Stock Soars"...You'll be glad to hear, MY MAIN MAN, my "shorts" took A BEATING!!...

 

got back sum today:)...i LUV U MAN 

Tue, 01/29/2013 - 20:55 | Link to Comment gnomon
gnomon's picture

Everybody sees "brick and mortar" stores dying everywhere.  Amazon keeps trudging along.  It is a "last man standing" investment.  And too many benniebucks are out there in circulation looking for a home when everything is overvalued, (except Gold and Silver).

Only way it makes sense to me is that it is the armageddon investment for the bathrobe brigade.

Tue, 01/29/2013 - 21:04 | Link to Comment slightlyskeptical
slightlyskeptical's picture

One item at a time by a brown truck is a business model that cannot survive while at the same time you are charging loss leader type prices. As soon as Amazon starts charging what they need to make a profit, the mass market retailers will take all their business back and mom and pop will have a chance again.

I would also bet my house that American Funds is selling the hell out of their AMZN position starting tomorrow if they haven't already started.  I own a bunch of their funds and would be upset if they didn't. Glad to see they dumped most of their Apple, but it left this pig as #1 holding.

Tue, 01/29/2013 - 22:40 | Link to Comment Son of Loki
Son of Loki's picture

Have I told anyone how pessimistic I am about these mail order companies? With postal rates skyrocketing and internet sales taxes soon (already in some states), the likes of Amazon, Ebay, JCPenny's, Sears and similar will bite the dust.

 

R.I.P.

 

Tue, 01/29/2013 - 22:51 | Link to Comment Hohum
Hohum's picture

Amazon good, Amazon bad.  It's just a retailer.  The rush to Amazon (and a few months back, Apple) just shows that the brilliant investing world would rather avoid any business that actually might be a game changer for our standard of living.  Where's the private investment in nuclear fusion?

Wed, 01/30/2013 - 17:00 | Link to Comment Non Passaran
Non Passaran's picture

Fusion? Of course not. The Gubmint doesn't subsidize Amazon competitors, to Invest in Amazon is much safer :-)

Tue, 01/29/2013 - 22:57 | Link to Comment pragmatic hobo
pragmatic hobo's picture

It's 1999 and 2007 all over again ...

“As long as the dream is there, the stock is going to go up,” Mr. Munster said."

http://www.nytimes.com/2013/01/30/technology/amazon-earnings.html?hp

Wed, 01/30/2013 - 00:23 | Link to Comment dark pools of soros
dark pools of soros's picture

caught from yahoo finance now...

 

Market Cap: 117.93B P/E (ttm): 3,099.40 EPS (ttm): 0.08

 

 

Wed, 01/30/2013 - 02:20 | Link to Comment ItsDanger
ItsDanger's picture

I gave up trading AMZN years ago.  The action on that stock defied all logic.

Wed, 01/30/2013 - 05:52 | Link to Comment GNWT
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