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Amazon Misses, Forecasts Inverse Profit

Tyler Durden's picture





 

Another epic retail disappointment:

  • AMAZON.COM 2Q EPS 1C, EST. 3C
  • AMAZON.COM 2Q SALES $12.83B, EST. $12.90B

And the kicker, proving that the company has finally gone "inverese" profit:

  • AMZN SEES 3Q OPER LOSS $50M-$350M, EST. PROFIT $119.6M - yes, negative
  • AMZN SEES 3Q NET SALES $12.9B-$14.3B, EST. $14.11

Mario Draghi promises that whatever AMZN loses in profit, it will make up in volume: "beleeeeve me." In other news, the US consumer is fine.

 


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Thu, 07/26/2012 - 16:06 | Link to Comment Piranha
Piranha's picture

the consumer is dead

Thu, 07/26/2012 - 16:11 | Link to Comment AlaricBalth
AlaricBalth's picture

Amazon misses, Starbucks misses, Zynga misses big, Facebook....Hits (barely).

My God, How I hate FB!!!

Thu, 07/26/2012 - 16:12 | Link to Comment veyron
veyron's picture

Facebook didnt hit ... they lost 8 cents a share.  They had higher DAU/MAU than expected, which is about as phony a measure as acsoi ...

Thu, 07/26/2012 - 16:14 | Link to Comment AlaricBalth
AlaricBalth's picture

Good get!!! Now it's fading after a brief pop. 

Thu, 07/26/2012 - 16:15 | Link to Comment Divided States ...
Divided States of America's picture

Well i guess epic dissappointment is inversely interpreted by the markets as good coz is green now

Thu, 07/26/2012 - 16:17 | Link to Comment veyron
veyron's picture

nice to see that the market is properly reacting to FB's miss ...

Thu, 07/26/2012 - 16:21 | Link to Comment SemperFord
SemperFord's picture

Screw FB but I and many others I know actually like Amazon. I can order Whey Protein, books, movies, electronics, etc. all without having to drive around LA looking for them and wasting gas and use my time to do things Id rather do...sucks if they go down

Thu, 07/26/2012 - 16:26 | Link to Comment Cursive
Cursive's picture

@SemperFord

It's reality. Think of the business model.  Point-to-point for physical goods is not the most efficient distribution model.

Thu, 07/26/2012 - 16:48 | Link to Comment Miffed Microbio...
Miffed Microbiologist's picture

Me too Semperford. Amazon prime is fabulous. Tax free and free 2 day shipping too good to be true (guess it really is)! I buy everything I can though them just to say FU to 9.75% California sales tax. However when I noticed I could buy my Betta a hammock for $2.14 (probably 2 cents worth of plastic) on Prime for free 2 day delivery, I realized there probably was some problem with their business model. Too many people out there must be buying Betta hammocks! It would be tragic to see them go down cuz of that, very few ways now to flip of CA besides moving.

Miffed:-)

Thu, 07/26/2012 - 17:15 | Link to Comment SemperFord
SemperFord's picture

@Cursive, I agree about their business model but I don't know how efficient they are being and whether changes could be made to raise profits. They are not the only ones doing anything they can to make a profit on volume though that may be dissapearing.

@Miffed, LOL, I do that same thing trying to say FU to Californias taxes. In fact I order things from other states just because freight is usually cheaper than taxes, take 10% in taxes??? for What? FU Crooked California officials. So before anybody asks, I am not leaving Cali, it is July and 69* with a cool breeze and the Marine layer willl come in about 6ish and the fire and wine start about 8pm :)

Thu, 07/26/2012 - 16:23 | Link to Comment Mark Carney
Mark Carney's picture

last quarter their profit margin was around 2%....what was it this time? lol

 

Volume matterz bitchez

Thu, 07/26/2012 - 16:24 | Link to Comment ACP
ACP's picture

Yeah no shit SBUX down 9%!!!

The bull run for that pig since 2009 is done.

Lotta tops in stox & big cycles, 3, 10 stock & 60 year bond cycle coming in to play the next couple weeks & months.

Thu, 07/26/2012 - 16:11 | Link to Comment iDealMeat
iDealMeat's picture

the consumer...

 

Doesn't need any more iCrap.

 

Thu, 07/26/2012 - 16:34 | Link to Comment Rip van Wrinkle
Rip van Wrinkle's picture

Correction, Can't afford any more crap.

Thu, 07/26/2012 - 16:13 | Link to Comment Haager
Haager's picture

Who cares the customer.

 

Bullish!

Thu, 07/26/2012 - 16:13 | Link to Comment Silver Bug
Silver Bug's picture

Wow, now that is not good.

 

http://silverliberationarmy.blogspot.ca/

Thu, 07/26/2012 - 16:32 | Link to Comment Whoa Dammit
Whoa Dammit's picture

So when are those highly paid Foxconn employees going to step up to the plate and lead the highly touted new consumer market that was supposed to be generated by outsourcing all of our jobs? Epic B school induced fail by the multinationals.

Thu, 07/26/2012 - 22:27 | Link to Comment Buck Johnson
Buck Johnson's picture

Spot on, spot on.  We are seeing that consumers have no money.  Amazon missing forcast and also in inverse profit should tell everyone that the consumer isn't there anymore.  Hell we have bestbuy laying off and other retailers and this isn't because they are saving money for christmas.  August is about here and the start of the fall holidays are approaching, even the stores that stock and get ready for big business aren't buying.   

Thu, 07/26/2012 - 16:06 | Link to Comment slaughterer
slaughterer's picture

AMZN = 2012's NFLX

Thu, 07/26/2012 - 16:15 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

FB = 2012's POS

Thu, 07/26/2012 - 16:08 | Link to Comment tu-ne-cede-malis
tu-ne-cede-malis's picture

I liked Amazon...until I realized most books from the Mises institute are free in ebook form!

Thu, 07/26/2012 - 16:44 | Link to Comment nonclaim
nonclaim's picture

I'm on the other side; books worth having in paper format, I'm buying them as long as the price is right. ~30 so far this year.

Thu, 07/26/2012 - 16:08 | Link to Comment the not so migh...
the not so mighty maximiza's picture

Don't Panic Mario gots us covered.

Thu, 07/26/2012 - 16:08 | Link to Comment Jlmadyson
Jlmadyson's picture

MAGICAL

Thu, 07/26/2012 - 16:08 | Link to Comment ssp2s
ssp2s's picture

Needs some hip ads like JCP

Thu, 07/26/2012 - 16:09 | Link to Comment YesWeKahn
YesWeKahn's picture

people just keep buying this junk stock.

Thu, 07/26/2012 - 16:12 | Link to Comment Hype Alert
Hype Alert's picture

Here it comes:

 

UPDATE 2-US earnings now seen falling in Q3, first time in 3 yrs  http://uk.reuters.com/article/2012/07/26/sp-earnings-idUKL2E8IQ52A20120726

"Third-quarter earnings of Standard & Poor's 500 companies are now expected to fall 0.1 percent from a year ago, a sharp revision from the July 1 forecast of 3.1 percent growth, Thomson Reuters data showed on Thursday."

Thu, 07/26/2012 - 16:14 | Link to Comment PontifexMaximus
PontifexMaximus's picture

Bullish

Thu, 07/26/2012 - 16:18 | Link to Comment Hype Alert
Hype Alert's picture

Isn't everything?  Reminds me of the dog from the movie Up, "Squirrel!"

Thu, 07/26/2012 - 16:09 | Link to Comment gjp
gjp's picture

Given previous history it'll probably trade up by tomorrow afternoon.  Why do fundamentals or valuations matter when Benny and Draghula have a bid under everything?

Thu, 07/26/2012 - 16:14 | Link to Comment gjp
gjp's picture

Silly me, did I say tomorrow afternoon?  Looks like another 5 or 10 minutes should do the trick.

Thu, 07/26/2012 - 16:10 | Link to Comment Cone of Uncertainty
Cone of Uncertainty's picture

So the stock is off what 2.5%, at 216

 

Thu, 07/26/2012 - 16:10 | Link to Comment Jumbotron
Jumbotron's picture

Does this mean the consumer is inversely alive?

Thu, 07/26/2012 - 16:11 | Link to Comment SloMoe
SloMoe's picture

Earnings shermearnings. How cool is it to have your own spaceship?

Thu, 07/26/2012 - 16:11 | Link to Comment Cone of Uncertainty
Cone of Uncertainty's picture

This has more to do with AMZN investing like crazy right now than it does top line pressures.

 

Thu, 07/26/2012 - 16:22 | Link to Comment Squid Vicious
Squid Vicious's picture

sounds exactly like the last 8 or 10 quarters... one of these years they are really going to figure out how to make money! maybe 2025 or so...

Thu, 07/26/2012 - 17:04 | Link to Comment SloMoe
SloMoe's picture

The POS is actually up on a miss:

"We don't need no stinking earnings..."

Fri, 07/27/2012 - 10:11 | Link to Comment Cone of Uncertainty
Cone of Uncertainty's picture

Yeah its up because you fucking idiots don't understand the concept of normalized earnings, yet, ZH is more than happy to beleive that Amazon really sells for a triple digit PE multiple.

News for you fools, the stock is up 6% and distrubtion center investment isn't going to continue ad infinitum.

Sometimes I'm embarrased by the sophomoric analysis around here and the blatant company bashing--news for you...some companies actually grow and create value for shareholders over time.

Lumping all companies into the shit box regardless of the business model tells me I'm dealing with financial illiterates.

LMFAO!!!!  +7% now...

Go ahead short Amazon you fucking pussies, I'll watch as you get your fucking face ripped off.

Thu, 07/26/2012 - 16:11 | Link to Comment Meesohaawnee
Meesohaawnee's picture

well that should bring us to 1380/90 on the spy tommorrow. really. does it matter???

Thu, 07/26/2012 - 16:12 | Link to Comment Dr. Engali
Dr. Engali's picture

In today's upside down world losses are a good thing.

Thu, 07/26/2012 - 16:20 | Link to Comment alien-IQ
alien-IQ's picture

DECK up 25% because they LOST less than expected.

Seriously...this has become a bad fuckin joke.

Thu, 07/26/2012 - 16:13 | Link to Comment pods
pods's picture

Unlike NFLX, Amazon actually offers products that people want to buy.

I love Amazon, and use it for most purchases, even if it is to look at the reviews.

You can get anything on it, and prime shipping is top notch.

Of course, their business is predicated on people actualy being able to buy things, so onward and downward.

pods

Thu, 07/26/2012 - 16:16 | Link to Comment Never One Roach
Never One Roach's picture

I like Amazon too. Good sevice and good products. NFLX stinks...poor service (slow streams for ex) and poor selection unless you have an IQ of 45.

Thu, 07/26/2012 - 16:19 | Link to Comment citta vritti
citta vritti's picture

idiocracy - I resemble that

Thu, 07/26/2012 - 16:14 | Link to Comment Never One Roach
Never One Roach's picture

Dow up >200 points? What am I missing?

Thu, 07/26/2012 - 16:16 | Link to Comment alien-IQ
alien-IQ's picture

just further proof that in markets, just like in farming...bullshit makes things grow.

Thu, 07/26/2012 - 16:15 | Link to Comment GolfHatesMe
GolfHatesMe's picture

IN Q3 Amazon will also provide services for the Underpants Gnomes

Thu, 07/26/2012 - 16:15 | Link to Comment Squid Vicious
Squid Vicious's picture

and... it's green.  unreal.

Thu, 07/26/2012 - 16:15 | Link to Comment alien-IQ
alien-IQ's picture

dropped from 220 to 202 on heavy volume...now back to 216.50 on vapor.

fucking pathetic market (and I use the term "market" very very loosely)

Thu, 07/26/2012 - 16:20 | Link to Comment Jim in MN
Jim in MN's picture

 

 

Thinking of sending in an inverse mortgage payment this month. 

Thu, 07/26/2012 - 16:20 | Link to Comment yrad
yrad's picture

From Reuters:

"We're all hopeful there's a fix around the horizon for the U.S. economy, but we also don't really expect it in the short run."

There's that word again...

Thu, 07/26/2012 - 16:22 | Link to Comment El Tuco
El Tuco's picture

Honestly, WTF do I need anymore. There is nothing that I want but peace and quite. If the economy had to rely on me we would have 99%  unemployment. I have even managed to finally get the wife and kids under semi-control.

Thu, 07/26/2012 - 16:22 | Link to Comment JLee2027
JLee2027's picture

Facebook is down 13% for the day, oops.

Thu, 07/26/2012 - 16:24 | Link to Comment Dr. Engali
Dr. Engali's picture

It needs to come down another 70% then it might look intersting.

Thu, 07/26/2012 - 16:22 | Link to Comment Dr. Engali
Dr. Engali's picture

At least the administration will be happy. Profits are a bad word to them.

Thu, 07/26/2012 - 16:28 | Link to Comment Cursive
Cursive's picture

Who could have seen this coming? /sarc

Thu, 07/26/2012 - 16:28 | Link to Comment Seasmoke
Seasmoke's picture

i will keep using amazon once in a blue moon UNTIL the corrupt POS state of NJ starts making them collect sales tax in 2013.....idiots everywhere !

Thu, 07/26/2012 - 17:04 | Link to Comment e_goldstein
e_goldstein's picture

Lol. Milo Minderbinder economics.

Thu, 07/26/2012 - 18:57 | Link to Comment SqueekyFromm
SqueekyFromm's picture

This certainly calls for an Irish Poem:

 

Amazonia In Verse

by Squeeky Fromm

Uh Oh, what was bad just got worse.

As we talk about profits "inverse."

No money got made

So this carry trade,

Carries Amazon out in a hearse.

 

Squeeky Fromm, Girl Reporter

 

 

Thu, 07/26/2012 - 20:25 | Link to Comment Mr_Wonderful
Mr_Wonderful's picture

Well, I guess a huge correction is in the offing. AMZN has outperformed the S&P 500 by a whopping 300% over the last two years.

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