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Amazon Misses, Forecasts Inverse Profit

Submitted by Tyler Durden on 07/26/2012 16:05 -0400

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 | 2654311 Piranha

the consumer is dead

Thu, 07/26/2012 - 16:11 | 2654336 AlaricBalth

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

My God, How I hate FB!!!

Thu, 07/26/2012 - 16:12 | 2654353 veyron

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 | 2654360 AlaricBalth

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

Thu, 07/26/2012 - 16:15 | 2654379 Divided States ...

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

Thu, 07/26/2012 - 16:17 | 2654396 veyron

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

Thu, 07/26/2012 - 16:21 | 2654412 SemperFord

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 | 2654442 Cursive

@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 | 2654577 Miffed Microbio...

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 | 2654680 SemperFord

@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 | 2654431 Mark Carney

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

Volume matterz bitchez

Thu, 07/26/2012 - 16:24 | 2654434 ACP

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 | 2654350 iDealMeat

the consumer...

Doesn't need any more iCrap.

Thu, 07/26/2012 - 16:34 | 2654489 Rip van Wrinkle

Correction, Can't afford any more crap.

Thu, 07/26/2012 - 16:13 | 2654362 Haager

Who cares the customer.

Bullish!

Thu, 07/26/2012 - 16:13 | 2654364 Silver Bug

Wow, now that is not good.

http://silverliberationarmy.blogspot.ca/

Thu, 07/26/2012 - 16:32 | 2654474 Whoa Dammit

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 | 2655416 Buck Johnson

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 | 2654315 slaughterer

AMZN = 2012's NFLX

Thu, 07/26/2012 - 16:15 | 2654378 ihedgemyhedges

FB = 2012's POS

Thu, 07/26/2012 - 16:08 | 2654322 tu-ne-cede-malis

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

Thu, 07/26/2012 - 16:44 | 2654551 nonclaim

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 | 2654324 the not so migh...

Don't Panic Mario gots us covered.

Thu, 07/26/2012 - 16:08 | 2654325 Jlmadyson

MAGICAL

Thu, 07/26/2012 - 16:08 | 2654326 ssp2s

Needs some hip ads like JCP

Thu, 07/26/2012 - 16:09 | 2654328 YesWeKahn

people just keep buying this junk stock.

Thu, 07/26/2012 - 16:12 | 2654330 Hype Alert

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 | 2654373 PontifexMaximus

Bullish

Thu, 07/26/2012 - 16:18 | 2654400 Hype Alert

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

Thu, 07/26/2012 - 16:09 | 2654333 gjp

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 | 2654365 gjp

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

Thu, 07/26/2012 - 16:10 | 2654337 Cone of Uncertainty

So the stock is off what 2.5%, at 216

Thu, 07/26/2012 - 16:10 | 2654343 Jumbotron

Does this mean the consumer is inversely alive?

Thu, 07/26/2012 - 16:11 | 2654346 SloMoe

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

Thu, 07/26/2012 - 16:11 | 2654347 Cone of Uncertainty

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

Thu, 07/26/2012 - 16:22 | 2654423 Squid Vicious

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 | 2654457 SloMoe

The POS is actually up on a miss:

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

Fri, 07/27/2012 - 10:11 | 2656365 Cone of Uncertainty

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 | 2654349 Meesohaawnee

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

Thu, 07/26/2012 - 16:12 | 2654355 Dr. Engali

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

Thu, 07/26/2012 - 16:20 | 2654410 alien-IQ

DECK up 25% because they LOST less than expected.

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

Thu, 07/26/2012 - 16:13 | 2654359 pods

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 | 2654386 Never One Roach

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 | 2654405 citta vritti

idiocracy - I resemble that

Thu, 07/26/2012 - 16:14 | 2654370 Never One Roach

Dow up >200 points? What am I missing?

Thu, 07/26/2012 - 16:16 | 2654390 alien-IQ

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

Thu, 07/26/2012 - 16:15 | 2654375 GolfHatesMe

IN Q3 Amazon will also provide services for the Underpants Gnomes

Thu, 07/26/2012 - 16:15 | 2654380 Squid Vicious

and... it's green. unreal.

Thu, 07/26/2012 - 16:15 | 2654381 alien-IQ

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 | 2654411 Jim in MN

Thinking of sending in an inverse mortgage payment this month.

Thu, 07/26/2012 - 16:20 | 2654415 yrad

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 | 2654424 El Tuco

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 | 2654426 JLee2027

Facebook is down 13% for the day, oops.

Thu, 07/26/2012 - 16:24 | 2654435 Dr. Engali

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

Thu, 07/26/2012 - 16:22 | 2654428 Dr. Engali

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

Thu, 07/26/2012 - 16:28 | 2654449 Cursive

Who could have seen this coming? /sarc

Thu, 07/26/2012 - 16:28 | 2654450 Seasmoke

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 | 2654648 e_goldstein

Lol. Milo Minderbinder economics.

Thu, 07/26/2012 - 18:57 | 2654771 SqueekyFromm

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 | 2655168 Mr_Wonderful

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.

Amazon Misses, Forecasts Inverse Profit

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