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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:

 

 

 

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Tue, 10/25/2011 - 16:15 | 1809771 SeverinSlade
SeverinSlade's picture

CNBS says BTFD.  Stocks are cheap, remember that.

Tue, 10/25/2011 - 16:16 | 1809775 Skeebo
Skeebo's picture

I'm looking for stocks to get cheaper too before I'll start buying.

Tue, 10/25/2011 - 16:42 | 1809835 TruthInSunshine
TruthInSunshine's picture

I'm no prophet, but I do like profit, and I'd dare say I'd add "a lot" to your cheaper, before I'd entertain buying into what may be the Japanese-esque 21 year/negative 88% (and counting) black hole.

Amazon has efficiencies and competitive advantages infinitely more plentiful than Brick & Mortar retailers and other online retailers, and even it misses.

I can hardly wait for the next CNBS anal-cyst to advise how this is the bottom, rather than a mere appetizer.

If Amazon is working off of these margins, Retail-geddon cometh.

Apple is now implementing a 'cut our prices' business model (officially) after seeing unit volume sales miss and 9% decline in same store sales, Amazon misses big, and NFLX loses nearly 1 million customers in a single quarter, and all I have to say is the MOMO crowd is going to relive 2008 with - leverage.

But the sell-siders will all rush onto CNBS & Bloomturd and excoriate the sheeple with cries of BTFD [aka "we really need you to buy at least some of our soon to be big time losers, because The Bernank & Geithner have their hands full with MBS & banking black holes, not to mention the plague of Black Death of looming EuroDebtapocalypse, and we are going to need to be as liquid as possible - please?"]

#Green shoots

#winningthefuture

#everything-is-all-better-in-the-EU-now

#saved-or-created-[fill in blank]-jobs

Tue, 10/25/2011 - 16:46 | 1809914 Fake Jim Quinn
Fake Jim Quinn's picture

Bad Christmas season coming. Sounds like kids may get gifts, but I think this is season where adults settle for Xs and Os

Tue, 10/25/2011 - 16:50 | 1809924 WonderDawg
WonderDawg's picture

Please please please let CMG be next.

Tue, 10/25/2011 - 16:55 | 1809945 max2205
max2205's picture

PPT is doing a great job....we should have been down 2,000 Dow points on all these breakdowns.... WELL PLAYED Sir!

Tue, 10/25/2011 - 17:13 | 1810025 azusgm
azusgm's picture

Please, please, please let BAC be next. And I'm not even short. It is simply time to flush that one.

Tue, 10/25/2011 - 17:52 | 1810129 rumblefish
rumblefish's picture

i've noticed CMG has not been as crowded as of late. don't get me wrong. they are  still slinging some serious burritos but volume has to be down.

 

 

Tue, 10/25/2011 - 17:35 | 1810085 Freddie
Freddie's picture

Santa doesn't come to America since the stupid vermin elected the muslim.

Tue, 10/25/2011 - 17:00 | 1809971 LongSoupLine
LongSoupLine's picture

No worries, the CNBS and sell side momos still have PCLN to ramp.  If that fails, they can always cut to Phil "Go Unions" Lebeau to distract the lemmings with a pretty new Detriot built and middle class financed glossy red future recall p.o.s.

If that doesn't work then the next step is CNBS "directive #1"...unbutton the blouses and focus on rack.

Tue, 10/25/2011 - 17:53 | 1810131 toady
toady's picture

Speaking of momos, I hope robo got out of netfix & amazon somewhere near the top, otherwise it has been a pretty rough ride lately...

Tue, 10/25/2011 - 18:08 | 1810169 YesWeKahn
YesWeKahn's picture

You got it wrong. The true strength in Amazon is actually its brand name. All the tech stuff you mentioned is nothing, someone good at it can do that in a few months of time.

Tue, 10/25/2011 - 18:23 | 1810213 DeeDeeTwo
DeeDeeTwo's picture

Amazon is now just another middleman, baby.

Wed, 10/26/2011 - 05:54 | 1811460 UP Forester
UP Forester's picture

Nuh-uh.  They're women, and they're on the moon....

Tue, 10/25/2011 - 18:56 | 1810320 riley martini
riley martini's picture

 Amazon wouldn't even have the .07% margin without the tax free advantage over retailers that have to pay for Amazons free ride .

Tue, 10/25/2011 - 18:56 | 1810324 riley martini
riley martini's picture

 Amazon wouldn't even have the .07% margin without the tax free advantage over retailers that have to pay for Amazons free ride .

Tue, 10/25/2011 - 20:03 | 1810480 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

#2 of the 5 horsemen of the stock market apocalypse. NFLX, AMZN, BIDU, PCLN and AAPL. The market's end is near.

Tue, 10/25/2011 - 16:32 | 1809854 HedgeAccordingly
HedgeAccordingly's picture

another one bites the dust... @theback9 nailed it again  http://hedge.ly/slrwMs

Tue, 10/25/2011 - 16:40 | 1809895 johngaltfla
johngaltfla's picture

But, but, but, the CNBS momoconimists said that AMZN, FSLR, and NFLX would guarantee full employment by Q4 2011!?!?!?!

Tue, 10/25/2011 - 16:54 | 1809938 Ronaldo
Ronaldo's picture

But, Bob Pissonme said this is just a bit of a rain shower in an otherwise bull market.  Really, this is just the expected pull back after a great run up in the market, the economy is in good shape. 

Can't you feel that wet spot running down your back, it is just rain!

Tue, 10/25/2011 - 17:49 | 1810121 azzhatter
azzhatter's picture

Bezos giving Pissonme a golden shower

Tue, 10/25/2011 - 16:17 | 1809773 azzhatter
azzhatter's picture

Cramer- buy buy buy buy...................  Oh wait that was Netflix

 

Gotta love that operating margin at Amazon

Tue, 10/25/2011 - 16:18 | 1809786 YesWeKahn
YesWeKahn's picture

Next year will be event better when CA buyers have to pay sale taxes.

Tue, 10/25/2011 - 16:17 | 1809779 gulf breeze
gulf breeze's picture

I am Robofader and I went short @ the highs. I am the best

 

LOL

Tue, 10/25/2011 - 16:27 | 1809842 homersimpson
homersimpson's picture

The only thing Robo is short is his ability to pick winners before the fact.

Tue, 10/25/2011 - 17:32 | 1810079 LooseLee
LooseLee's picture

BTW Where is that POS MomoTard? Yesterday it was Netflix and today Amazon; two of his favorite bulltard calls. What a lousy POS conformist establishment pig is he! ZH readers kept pointing out the fundamentals of these companies and he scoffed. Well, Robo, what do you have to say now? Be a man! Let's hear your rationalization...

Tue, 10/25/2011 - 16:17 | 1809780 monopoly
monopoly's picture

10 Billion, 20 Billion, it means nothing if you earn .14 cents. Freaking absurd.

Wed, 10/26/2011 - 05:59 | 1811463 UP Forester
UP Forester's picture

It's easy if you give a $450 million spread on the next quarter....

Tue, 10/25/2011 - 16:18 | 1809782 YesWeKahn
YesWeKahn's picture

Don't worry, they will pump this junk back up tomorrow. This is the darling stock for many idiots.

Tue, 10/25/2011 - 16:18 | 1809783 catacl1sm
catacl1sm's picture

and BOOM goes the dynamite!

Tue, 10/25/2011 - 16:42 | 1809903 Manthong
Manthong's picture

Bring on LNKD and CRM.

Tue, 10/25/2011 - 16:55 | 1809944 Smithovsky
Smithovsky's picture

looking forward to (buying puts on) GRPN

Tue, 10/25/2011 - 17:01 | 1809980 Sequitur
Sequitur's picture

Yep. Got some big puts on LNKD and CRM, two supreme shitbags with p/e at 400+.

Tue, 10/25/2011 - 17:26 | 1810058 devo
devo's picture

I'd add VMware to your list. Not a complete shitbag, but you definitely do not want that P/E ratio in this environment...

Tue, 10/25/2011 - 17:49 | 1810120 Pool Shark
Pool Shark's picture

 

 

LNKD currently at P/E of 1,238...

Tue, 10/25/2011 - 16:53 | 1809928 FinHits
FinHits's picture

You know that it would be untrue 

You know that I would be a liar 

If I was to say to you 

Girl, we couldn't get much higher 

 

Come on baby light my Fire*

 

*Kindle variant

 

I'll stick my neck out and say that Kindle Fire will grab significant iPad market share, and the ramp up of volumes will be okay. Rebound in the cards.

Tue, 10/25/2011 - 17:30 | 1810073 TruthInSunshine
TruthInSunshine's picture

catacl1sm, I'd be remiss to not give credit where credit is due (context nothwithstanding):

Boom Goes the Dynamite
Tue, 10/25/2011 - 16:18 | 1809784 SeverinSlade
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Amazon's going to follow NFLX.  They'll likely soon respond with raising pricing for Amazon Prime which will lead to even more losses.

Tue, 10/25/2011 - 16:27 | 1809841 DormRoom
DormRoom's picture

With a P/E of 100, they have a lot of room to fall.

Tue, 10/25/2011 - 16:31 | 1809853 Blorf
Blorf's picture

Exactly, they are still at NFLX from three months ago levels in terms of PE.  No reason to buy here.

Tue, 10/25/2011 - 16:41 | 1809879 DormRoom
DormRoom's picture

I'm still waiting for the web2.0 bubble to pop.. Linkedin has a P/E over 1000!  Christ.  Then all those angel/VC seeded companies with poor business models, will go bust.  DST (Digital Sky Technologies) will implode, and Silicon Valley will be ruined, from their bubble-mania (look @ the lofty  valuations in secondary markets).  That is the lesson for misallocating capital in such a grand scale.  There is no free lunch.  Bankers have failed to learn this lesson.

 

#occupywallstreet.

Tue, 10/25/2011 - 16:56 | 1809950 Willzyx
Willzyx's picture

PCLN I'm looking at you

Tue, 10/25/2011 - 17:04 | 1809983 DormRoom
DormRoom's picture

floats of PCLN, and LNKD are too small.  I wouldn't short them, less a short squeeze wipes you out. But the drop in AMZ, and NFLX will put over-valued web companies on notice.

Wed, 10/26/2011 - 10:45 | 1812450 Willzyx
Willzyx's picture

Shorting the likes of PCLN or LNKD is always a tricky proposition.  Just ask Whitney.  Worthless OTM puts are better than a margin call.  With a P/E of 35, market cap of nearly $25 billion, and a book value of $2 billion, the flameout will be spectacular.  Just like NFLX.  Unless of course they continue to grow their revenue at a rate of 25-35% each year.

Wed, 10/26/2011 - 09:27 | 1812002 Reform1776
Reform1776's picture

Check out Jan 2012 OTM PUTS. They go clear down to $90.

Tue, 10/25/2011 - 19:43 | 1810441 SofaPapa
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They didn't "fail" to learn it.  They were protected from learning it by the insertion of hundreds of billions of dollars to cover the losses that such behavior brings.  So they've learned the lesson they were taught: we do not need to fear losses as long as those losses are large enough; when large enough, the taxpayer will take the loss.  Moral hazard, not incompetence.

Tue, 10/25/2011 - 16:18 | 1809785 Biggvs
Biggvs's picture

Wow, AMZN tanks, ES doesn't even care.

Tue, 10/25/2011 - 17:04 | 1809988 Ralph Spoilsport
Ralph Spoilsport's picture

What is ES? Thanx in advance.

Tue, 10/25/2011 - 17:23 | 1810049 TheLooza
TheLooza's picture

Electric Seal.

 

He don't give a fuck about much, granted.

Tue, 10/25/2011 - 19:17 | 1810381 Esso
Esso's picture

S&P futures.

Tue, 10/25/2011 - 16:18 | 1809787 Belarus
Belarus's picture

Wow! So the retail outlets are all vacant, and not even the low cost internet behmouth could pull off a victory. This begs the question: where are consumers spending all their money? Just today, the consumer confidence and consomer spending chart on ZH diverged hugely where ZH asks the question, and I'm paraphrasing, "are these numbers made up too?"

Looks like we have our answer. 

Tue, 10/25/2011 - 16:22 | 1809811 Ahmeexnal
Ahmeexnal's picture

Amazon is fuxored.

Everyone is buying at taobao.

Tue, 10/25/2011 - 16:24 | 1809823 No One
No One's picture

Well, aren't we all buying ipads to watch Netflix.. no?? We all have 2 GM vehicles in the garage, right?

Tue, 10/25/2011 - 16:52 | 1809932 DCFusor
DCFusor's picture

Well, I just cancelled my cable sub, and as luck has it, I do have two NEW GM vehicles in my driveway, love them both (2010 Camaro SS and 2011 Cruze).  Bought the first with profits from shorting GM awhle back.  And who knows, I might get NetFlix at some point, but for now, I find myself a lot more relaxed with no TV at all, other than the humerous links to youtube often posted here.  And even weirder, I just bought a vidcam at Amazon today (it was marked about half off compared to other sources).

But these are NOT norms for me.  The last new car I bought before these was in '77, and the last time I bought anything from Amazon was last year, and it was a cheap used book.

I'm pretty weird for my neighborhood, I'm almost an ant-indicator, so No One might just be on track.

Wed, 10/26/2011 - 14:07 | 1813440 Willzyx
Willzyx's picture

I don't pay lot fees 'cause I live in my car

Tue, 10/25/2011 - 16:34 | 1809862 Ag1761
Ag1761's picture

I buy PM's and Whisky as an investment with all my spare cash, screw Amazon. I'm confident....

Tue, 10/25/2011 - 16:19 | 1809790 Deadpool
Deadpool's picture

those margins are soooo thin...not much room for error. A tech error like RIMM had would kill their year. I think Safeway has better margins.............

Tue, 10/25/2011 - 16:19 | 1809791 GeneMarchbanks
GeneMarchbanks's picture

CMG to 250 next up...

Tue, 10/25/2011 - 17:09 | 1810010 SilverIsKing
SilverIsKing's picture

Have people given up eating too?

Tue, 10/25/2011 - 16:20 | 1809795 danger close here
danger close here's picture

picked up some Amazon oct 205 and 215 puts; wish me luck

 

 

IM FKING RICH!11111

Tue, 10/25/2011 - 16:46 | 1809915 Unprepared
Unprepared's picture

Please keep your finger on [Shift] while pressing the 1's

Tue, 10/25/2011 - 21:21 | 1810666 Taint Boil
Taint Boil's picture

I would like to buy a vowel please.

Tue, 10/25/2011 - 16:19 | 1809796 Mitch Comestein
Mitch Comestein's picture

Okay, I don't follow this stock.  I just have to say how the fuck someone pays $250/share for 100 P/E.  The stock was 37 in 2008 and 26 in 2006.  Some people out there are fucking brain dead. 

Buying stocks to some is the equivalent of pressing the "like" button on facebook.

Tue, 10/25/2011 - 16:24 | 1809821 Poule Mouillee
Poule Mouillee's picture

All through the power of one-click shopping.

Tue, 10/25/2011 - 16:42 | 1809902 mynhair
mynhair's picture

Can you say 'Oweblahma voters'?

Tue, 10/25/2011 - 16:49 | 1809922 Unprepared
Unprepared's picture

Because nobody cares about something called dividends anymore ... all chasing paper price appreciation.

Because some moron was talking about 'reinvestment risk'

Tue, 10/25/2011 - 16:20 | 1809797 lizzy36
lizzy36's picture

This will be the day MOMO dies........RIP

Tue, 10/25/2011 - 16:33 | 1809860 GeneMarchbanks
GeneMarchbanks's picture

You promise? Methinks momos hold this market together...

Tue, 10/25/2011 - 16:58 | 1809958 max2205
max2205's picture

Ah... PPT....QE and all the printing......bechea the printers are being warmed now...

 

Fuck you Fed!

Tue, 10/25/2011 - 18:43 | 1810272 junkyardjack
junkyardjack's picture

What the hell, I thought bad news was bullish?  Just when you think you've got the market figured out it throws another whammy at you.  Don't the investors remember QE3 is going to come sometime in the future so they should just start pricing it in today?

Tue, 10/25/2011 - 16:20 | 1809798 Irish66
Irish66's picture

1973-1974

Tue, 10/25/2011 - 16:20 | 1809799 monopoly
monopoly's picture

cnbc should be shut down because of the drivel they produce. And yesterday MarketWatch headline,,,, "FDX to hire 20,000 seasonal workers"... What it should have said that they will also fire the same 20,000 and probably a few more in January. Bullshit makes me sick. We get closer to Moscow every month.

Tue, 10/25/2011 - 16:20 | 1809800 SloMoe
SloMoe's picture

"No, Paulson & Co. is not long."

That's funny....

Tue, 10/25/2011 - 16:21 | 1809801 jdelano
jdelano's picture

What's with the incessent Paulson bashing?  It's like if you guys end up getting rich on pms and Paulson bashes you.  What'd you want him to do with 20 billion dollars?  In addition to the financials etc., he went out and bought gld with it, which, unless you're actually short pms in an attempt to perpetrate a perfect Goldman-esque fleecing, ought to make him your biggest hero, no?

Tue, 10/25/2011 - 16:23 | 1809814 bob_dabolina
bob_dabolina's picture

We all have a little schadenfreude. 

Tue, 10/25/2011 - 17:06 | 1809998 Ralph Spoilsport
Ralph Spoilsport's picture

What's schadenfrude in German again?

Tue, 10/25/2011 - 16:27 | 1809836 gjp
gjp's picture

The guy was lionized for making money off the 2008 crisis when it was gift-wrapped to him via GS scamming their clients, and then proved he doesn't get the real bear case by going megalong TBTF zombies post crisis.  I'm happy to see him lose even if it hurts PMs in the short run.

Tue, 10/25/2011 - 16:38 | 1809888 jdelano
jdelano's picture

Meh.  Paulson went to Goldman and said, CDOs are shit and these are the worst tranches of shit I can find.  Goldman said "housing is never going to slow down."  Paulson said well then, let me bet against this shit.  Goldman said okay, but in case you're right, let us find you some other sucker to carry the other side of the trade.  Paulson said, fine by me.

Moral of story in my mind, Goldman = scumbuckets, Paulson, pretty fucking smart if a little opportunistic.  You guys are all planning on screwing your neighbors by having the only bars of gold and silver in town when it takes $2000 to buy a loaf of bread.  I don't buy the sanctimonious moral angle on the Paulson bashing.  Just looks like envy. 

 

As to not getting the bear case--not quite right.  He fucked up the timing not the thesis.  When setting up the gold trade, he told clients I'm doing this because I think QE is going to work for a while, and then shit is going to hit the fan somewhere around 2014.  You're butying into the mainstream characterization of him as one of the evil elite.  Don't think that's really who he is.  He's more like a ZHer who knocked the cover off the ball.  Just sayin.

Wed, 10/26/2011 - 07:55 | 1811676 Stax Edwards
Stax Edwards's picture

Yep, John is sure knockin it outta the park, lol

Tue, 10/25/2011 - 16:36 | 1809875 homersimpson
homersimpson's picture

"What's with the incessent Paulson bashing?" Probably because 1) he's looking like a one-trick pony and 2) he got into a deal that probably 99.9% of the population couldn't get in on with the housing short.

Tue, 10/25/2011 - 16:43 | 1809905 ghostfaceinvestah
ghostfaceinvestah's picture

My big problem is his housing short wasn't even his idea.  But then people look at him like he is a genius.

Tue, 10/25/2011 - 16:48 | 1809920 jdelano
jdelano's picture

Hahaha--because he (and Paolo) got of the couch and had the ambition, balls, and motivation to go to a.) college, where Paulson graduated top of his class and b.) into business for himself putting his own money on the line.  Whatsmore, Pauslon had nothing to do with the invention of CDS on CDOs, trading desks at freaking MERRILL and LEHMAN etc were the first to put them together and he bought up as much as he could, losing on them relentlessly until the tide began to turn.  THEN came the Goldman trades.    Stop eating the propaganda.  

Tue, 10/25/2011 - 17:04 | 1809991 jcaz
jcaz's picture

Wow- you gonna give that book report in your 3rd period Social Studies class tomorrow?

Your whining seems a bit bizarre, dude- settle down, it's just money, and no, Paulson won't read your posts and offer you a job when you graduate.....

Tue, 10/25/2011 - 16:55 | 1809941 DCFusor
DCFusor's picture

His selling of gold to make margin calls on his less wise investments is probably why we were able to buy it so cheap recently.  It had to be at least part of it, along with the margin hike.  So we don't hate him.  We just think he's been more or less an overhyped one trick pony.

Tue, 10/25/2011 - 16:21 | 1809805 bob_dabolina
bob_dabolina's picture

Morgan Stanley is long...they've had some fuckin' stinkers lately

Tue, 10/25/2011 - 16:35 | 1809867 GeneMarchbanks
GeneMarchbanks's picture

They sure have bob. First Solar gave them a nice preview of their own fate...

Tue, 10/25/2011 - 16:22 | 1809806 Waterfallsparkles
Waterfallsparkles's picture

As I said People are not spending.  As Main Street is floundering and Wall Street is Celebrating, Main Street is slowly taking down Wall Street.

Wall Street has not cared about Main Streets problems.  Just maybe now they will take notice.

Call it trickle up Depression.

Tue, 10/25/2011 - 16:56 | 1809936 Waterfallsparkles
Waterfallsparkles's picture

Not spending and paying off Debt instead of "Saving" Money is my way of a Passive Agressive Protest against Wall Street and their Greed.

I deprive them of the interest on my Debt and do not put Money in their Banks.  All of the Money goes to pay down Debt and Mortgages. 

The Banks and Wall Street loses on both accounts.  They lose the interest on any Debt I "had" and the Money that would have gone into their Bank in "Savings".

Plus, not spending takes down the Companies on their Golden Wall Street.  As the Companies cannot make any Money if I and many others do not buy their products.

Tue, 10/25/2011 - 16:56 | 1809952 DCFusor
DCFusor's picture

You ain't hurting them - you helped them by going into debt in the first place and you're still paying it back with interest - I call that a good little bank customer. I've not had ANY debt since '72 myself -- they get squat from me.

Wed, 10/26/2011 - 06:49 | 1811479 Waterfallsparkles
Waterfallsparkles's picture

Maybe so but remember I am making Money on thier Money as well.  With Rental Property's borrowing Money to Buy them and then collecting Rent, after about 5 years of Ownership I start to make Money on the Banks Money and over time the Tenants effectivly pay off the Loan and the Interest.  Plus, I usually get 5% return above the Mortgage Payment.

I also said in a previous post it takes Money to Make Money.

Tue, 10/25/2011 - 16:23 | 1809813 ghostfaceinvestah
ghostfaceinvestah's picture

How much of this does JAT Capital own?

Oh well, at least they didn't cut their dividend...oh, wait...

Tue, 10/25/2011 - 16:24 | 1809824 tecno242
tecno242's picture

To what ungodly number will this send the trailing P/E to on AMZN?

if they post a loss in Q4.. their trailing P/E might be near 1000 or something ridiculous even after an 18% sell off.

Tue, 10/25/2011 - 16:37 | 1809878 Hansel
Hansel's picture

Trailing P/E after this number and accounting for the 15% after hours decline is still 100x.  That's progress.

Tue, 10/25/2011 - 16:24 | 1809825 lizzy36
lizzy36's picture

Again, i must point out the fact that i think GROUPON's IPO just died as well.

Tue, 10/25/2011 - 16:43 | 1809908 ghostfaceinvestah
ghostfaceinvestah's picture

I hope not, I have been dying to short that one.  That business concept is worth exactly zero.

Tue, 10/25/2011 - 22:04 | 1810845 slewie the pi-rat
slewie the pi-rat's picture

not groupon the i.po_ny?

santa?  say it ain't so!

Tue, 10/25/2011 - 16:24 | 1809826 gjp
gjp's picture

It's disappointed 5, 6 who knows how many consecutive quarters and recovered all its post-earnings losses within a day or two if not sooner and headed off to the momo races.  Could this time finally be different?  Anyone's guess since questions of fundamentals have long since been left behind.

Tue, 10/25/2011 - 16:25 | 1809831 Iriestx
Iriestx's picture

It's OK guys, I just got a PM from Robotrader.  He assures me that he's been long for 5 years and got out at exactly the top, just before this news.

Tue, 10/25/2011 - 16:26 | 1809833 Mitch Comestein
Mitch Comestein's picture

Over 200 hundy/share and shareholders are presented 14 cents each...wow.

Tue, 10/25/2011 - 16:27 | 1809839 RobotTrader
RobotTrader's picture

BRCM getting blowtorched.

Waiting on others.....

Tue, 10/25/2011 - 16:36 | 1809873 YesWeKahn
YesWeKahn's picture

buy TYP afterHour.

Tue, 10/25/2011 - 16:37 | 1809880 Captain Benny
Captain Benny's picture

RT, how many shares long were you AMZN?

Tue, 10/25/2011 - 16:38 | 1809883 Frank N. Beans
Frank N. Beans's picture

down all of 4%, yeah that's blowtorched. 

Tue, 10/25/2011 - 16:57 | 1809951 buzzsaw99
buzzsaw99's picture

zion and genworth were more fun to watch imo.

Tue, 10/25/2011 - 16:27 | 1809840 Stochdoc
Stochdoc's picture

Anyone else notice a lot of high profile misses today - 3M especially.

Tue, 10/25/2011 - 16:29 | 1809846 qussl3
qussl3's picture

And FDX claims to need 20k more bodies in 4Q.

That will end well.

Tue, 10/25/2011 - 17:10 | 1809934 TruthInSunshine
TruthInSunshine's picture

Corporate layoff notices are being sent out via overnight FedEx.

It's the newest trend.

As the 'Bobs' from Office Space would say:

"We find that it mitigates episodes of workplace violence."

Tue, 10/25/2011 - 16:30 | 1809850 Socrate
Socrate's picture

Another one bytes teh dust.

Tue, 10/25/2011 - 16:32 | 1809852 NDXTrader
NDXTrader's picture

AAPL, IBM, AMZN, BRCM all dissapoint massively and the NDX sits 100 points off the high of the year. The possibility of money printing is a powerful drug

Tue, 10/25/2011 - 16:34 | 1809864 Christoph830
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But CNBC told me we're seeing killer earnings across the board?

 

Tue, 10/25/2011 - 16:35 | 1809866 Baron Robber
Baron Robber's picture

his mom let him out of the basement

Tue, 10/25/2011 - 16:35 | 1809869 Debtless
Debtless's picture

Zyngas IPO will save us all.

{sarc off}

Tue, 10/25/2011 - 16:57 | 1809954 Unprepared
Unprepared's picture

In the words of the latest Oil martyr, they will march on them 'zynga, zynga'

Tue, 10/25/2011 - 16:40 | 1809894 Shizzmoney
Shizzmoney's picture

Well, there goes my Amazon prediction of them being the only ones to survive a crappy XMAS retail season!

Zynga IPO is def worth a look.  To investors: I'd keep an eye on any potential online poker legislation and watch Rep. Barton's hearing today on the matter on CSPAN.  Zynga poker client considered one of the best in the business for both PC AND Cell Phones.  I am sure casinos will line up (if not themselves) to use this poker client as well as the cache of untapped potential player pool that is Facebook.

Tue, 10/25/2011 - 16:47 | 1809918 TooBearish
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NO worries they'll make it up on volume

Tue, 10/25/2011 - 16:49 | 1809923 Waterfallsparkles
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All day yesterday CNBC was saying that the Hedge Fund Managers would have to hold their Breath and buy as most were not making enough profit.

Looks like today they Breathless at their losses.

Tue, 10/25/2011 - 16:50 | 1809925 SeverinSlade
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HFT Algo bashing resumes/continues tomorrow.

Tue, 10/25/2011 - 16:53 | 1809937 Kim Jong-Il
Kim Jong-Il's picture

Lands End is floating a 40 off 100 coupon with free shipping good until Thursday.

Maybe their having a slow quarter?

Tue, 10/25/2011 - 16:55 | 1809943 mynhair
mynhair's picture

I wanna see pinata bread implode.  And that ridiculous burrito joint.

Tue, 10/25/2011 - 16:55 | 1809946 Ned Zeppelin
Ned Zeppelin's picture

I buy from Amazon all the time. They have the lowest prices, cheap or free shipping, generous return policies, etc. etc.  I am not surprised to hear their margins are this slim, or shipping costs unrecovered. I feel partially to blame for this one. 

Sorry, Jeff.

Tue, 10/25/2011 - 17:08 | 1810004 Saxxon
Saxxon's picture

Agreed Ned; I like the Co. but not the stock.

 

Tue, 10/25/2011 - 17:20 | 1810040 YesWeKahn
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AMZN is probably a good 50-80$ stock, certainly not a 200$ stock.

Tue, 10/25/2011 - 19:13 | 1810368 devo
devo's picture

I agree, I'd say $50-60 for someone into buying stocks in this environment. It's basically Walmart with a riskier growth story.

Tue, 10/25/2011 - 17:30 | 1810070 virgilcaine
virgilcaine's picture

They charging Ny sales tax drove me away.  Bye Bye AMAZN, just another retail outfit.

Tue, 10/25/2011 - 17:31 | 1810077 slaughterer
slaughterer's picture

Too many AAPL me-too products.  AMZN should stick with online retailing, and not netbook design, cloud computing, marketing algos, et. al.  Is this lackof focus Bezos' mid-age crisis?  Caveat: short AMZN, since $230.     

Tue, 10/25/2011 - 17:38 | 1810088 devo
devo's picture

I know I never put this in print here on ZH so I'll sound like a pouser, but I've been telling friends/family that Apple, Amazon, and Netflix were overpriced.

Apple: rehashed versions of the same product, dated specs (especially in macbook pros), + no "new" iphone. and all this at a premium?

Amazon: people can't afford anything except food.

Netflix: price gouging.

I think VmWare is in trouble. P/E is too high; only way it grows into that is by cutting bottom line and accounting tricks, not via margins.

Also, with all these bad earnings reports, expect to see the tax holiday by the holidy season. It'll be QE3 without the Fed scrutiny. A green Christmas with a giant serving of moral hazard in the ol' corporate stocking.

Tue, 10/25/2011 - 17:39 | 1810095 Bam_Man
Bam_Man's picture

Pre-announcement trailing P/E of well over 100. And they are going to post an operating loss.

Price discovery, bitchezzz.

Tue, 10/25/2011 - 17:47 | 1810118 virgilcaine
virgilcaine's picture

Robo momo stocks falling like that old  international space station...lolz.

Tue, 10/25/2011 - 18:54 | 1810316 Blano
Blano's picture

Saying that was a "prediction" is a bit of a stretch don't ya think?

Tue, 10/25/2011 - 19:43 | 1810447 peekcrackers
peekcrackers's picture

AMZN .. the on-line book store that sells other retailers shit.

HEY AMZN 2005 bubble called and said they want there stock back.

punch your self in the nuts , it will feel better

Tue, 10/25/2011 - 20:26 | 1810534 FeetOnTheGround
FeetOnTheGround's picture

So . . increasing volume (JUST PRIOR TO A TWENTY-FIVE PERCENT DROP) is purely random?

Or is that's what's known as insider trading?

 

Tue, 10/25/2011 - 20:30 | 1810540 zebra
zebra's picture

guys

this is totally bullish. people are too busy working, buying stocks and houses therefore don't have time to shop on amazon.com!!!!!!

 

Tue, 10/25/2011 - 20:35 | 1810546 Hephasteus
Hephasteus's picture

Poor amazon. And just when running massive cloud services on completely VM tainted kernels was looking like such good idea.

Wed, 10/26/2011 - 02:48 | 1811390 rash.menaria
rash.menaria's picture

Unlike structural issues at Netflix, Amazon's EPS hit is mainly due to discretionary opex the company is doing. Here is what some of the sell side analysts are saying on the no.s:

http://equityleaks.blogspot.com/2011/10/amazon-inc-margin-shrinks-as-inv...

 

Wed, 10/26/2011 - 08:58 | 1811879 Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

AMZN's secret?Pretty simple really, they lose $10 a unit on the Kindle Fire but they make it up on the volume.

Yet another darling momo stock is whacked and the NDX is just under the years highs,the Euro nightmare is shortly to be resolved or not,either way, does anyone here apart form Tyler think tptb will let the Euro or the markets drop if the European govts don't fudge the Greek/ESF?

Whatever the outcome,the Euro and stockmarkets will be pushed higher IMHO,just to prove that the system isn't broken.

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