Amazon Misses, Forecasts Inverse Profit

Tyler Durden's picture

Another epic retail disappointment:

  • 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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Piranha's picture

the consumer is dead

AlaricBalth's picture

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

My God, How I hate FB!!!

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 ...

AlaricBalth's picture

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

Divided States of America's picture

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

veyron's picture

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

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 if they go down

Cursive's picture


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

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.


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 :)

Mark Carney's picture

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


Volume matterz bitchez

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.

iDealMeat's picture

the consumer...


Doesn't need any more iCrap.


Rip van Wrinkle's picture

Correction, Can't afford any more crap.

Haager's picture

Who cares the customer.



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.

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.   

slaughterer's picture

AMZN = 2012's NFLX

tu-ne-cede-malis's picture

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

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.

the not so mighty maximiza's picture

Don't Panic Mario gots us covered.

ssp2s's picture

Needs some hip ads like JCP

YesWeKahn's picture

people just keep buying this junk stock.

Hype Alert's picture

Here it comes:


UPDATE 2-US earnings now seen falling in Q3, first time in 3 yrs

"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."

Hype Alert's picture

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

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?

gjp's picture

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

Cone of Uncertainty's picture

So the stock is off what 2.5%, at 216


Jumbotron's picture

Does this mean the consumer is inversely alive?

SloMoe's picture

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

Cone of Uncertainty's picture

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


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...

SloMoe's picture

The POS is actually up on a miss:

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

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.

Meesohaawnee's picture

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

Dr. Engali's picture

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

alien-IQ's picture

DECK up 25% because they LOST less than expected.

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

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.


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.

Never One Roach's picture

Dow up >200 points? What am I missing?

alien-IQ's picture

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

GolfHatesMe's picture

IN Q3 Amazon will also provide services for the Underpants Gnomes

Squid Vicious's picture

and... it's green.  unreal.

alien-IQ's picture

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

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

Jim in MN's picture



Thinking of sending in an inverse mortgage payment this month.