Amazon Misses, Guides Lower, Sees Q4 Operating Loss; Shares Tumble

Tyler Durden's picture

The latest Momo implosion as predicted:

  • AMAZON.COM 3Q EPS 14C, EST. 24C                       
     
  • AMAZON.COM 3Q REVENUE $10.88 BILLION VS EST. $10.95
     
  • AMAZON.COM SEES 4Q SALES $16.45B-$18.65B, EST. $18.16B
  • AMAZON.COM 3Q OPERATING MARGIN 0.7%
  • AMAZON.COM sees 4Q operating income (loss) between $(200) million and $250 million, or between 142% decline and 47% decline compared with fourth quarter 2010

No, Paulson & Co. is not long.

And it just gets uglier:

From the earnings release:

The following forward-looking statements reflect Amazon.com’s expectations as of October 25, 2011. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce and the various factors detailed below.

Fourth Quarter 2011 Guidance

  • Net sales are expected to be between $16.45 billion and $18.65 billion, or to grow between 27% and 44% compared with fourth quarter 2010.
  • Operating income (loss) is expected to be between $(200) million and $250 million, or between 142% decline and 47% decline compared with fourth quarter 2010.
  • This guidance includes approximately $200 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions or investments are concluded and that there are no further revisions to stock-based compensation estimates.

And as usual: the holders: