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