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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 | Link to Comment SeverinSlade
SeverinSlade's picture

CNBS says BTFD.  Stocks are cheap, remember that.

Tue, 10/25/2011 - 16:16 | Link to Comment Skeebo
Skeebo's picture

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

Tue, 10/25/2011 - 16:42 | Link to Comment 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 | Link to Comment 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 | Link to Comment WonderDawg
WonderDawg's picture

Please please please let CMG be next.

Tue, 10/25/2011 - 16:55 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Freddie
Freddie's picture

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

Tue, 10/25/2011 - 17:00 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment DeeDeeTwo
DeeDeeTwo's picture

Amazon is now just another middleman, baby.

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

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

Tue, 10/25/2011 - 18:56 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment HedgeAccordingly
HedgeAccordingly's picture

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

Tue, 10/25/2011 - 16:40 | Link to Comment 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 | Link to Comment 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 | Link to Comment azzhatter
azzhatter's picture

Bezos giving Pissonme a golden shower

Tue, 10/25/2011 - 16:17 | Link to Comment 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 | Link to Comment YesWeKahn
YesWeKahn's picture

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

Tue, 10/25/2011 - 16:17 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment monopoly
monopoly's picture

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

Wed, 10/26/2011 - 05:59 | Link to Comment 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 | Link to Comment 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 | Link to Comment catacl1sm
catacl1sm's picture

and BOOM goes the dynamite!

Tue, 10/25/2011 - 16:42 | Link to Comment Manthong
Manthong's picture

Bring on LNKD and CRM.

Tue, 10/25/2011 - 16:55 | Link to Comment Smithovsky
Smithovsky's picture

looking forward to (buying puts on) GRPN

Tue, 10/25/2011 - 17:01 | Link to Comment 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 | Link to Comment 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 | Link to Comment Pool Shark
Pool Shark's picture

 

 

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

Tue, 10/25/2011 - 16:53 | Link to Comment 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 | Link to Comment 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 | Link to Comment SeverinSlade
SeverinSlade's picture

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 | Link to Comment DormRoom
DormRoom's picture

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

Tue, 10/25/2011 - 16:31 | Link to Comment 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 | Link to Comment 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 | Link to Comment Willzyx
Willzyx's picture

PCLN I'm looking at you

Tue, 10/25/2011 - 17:04 | Link to Comment 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 | Link to Comment 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 | Link to Comment Reform1776
Reform1776's picture

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

Tue, 10/25/2011 - 19:43 | Link to Comment SofaPapa
SofaPapa's picture

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 | Link to Comment Biggvs
Biggvs's picture

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

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

What is ES? Thanx in advance.

Tue, 10/25/2011 - 17:23 | Link to Comment TheLooza
TheLooza's picture

Electric Seal.

 

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

Tue, 10/25/2011 - 19:17 | Link to Comment Esso
Esso's picture

S&P futures.

Tue, 10/25/2011 - 16:18 | Link to Comment 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 | Link to Comment Ahmeexnal
Ahmeexnal's picture

Amazon is fuxored.

Everyone is buying at taobao.

Tue, 10/25/2011 - 16:24 | Link to Comment 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 | Link to Comment 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 | Link to Comment Willzyx
Willzyx's picture

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

Tue, 10/25/2011 - 16:34 | Link to Comment 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 | Link to Comment 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 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

CMG to 250 next up...

Tue, 10/25/2011 - 17:09 | Link to Comment SilverIsKing
SilverIsKing's picture

Have people given up eating too?

Tue, 10/25/2011 - 16:20 | Link to Comment 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 | Link to Comment Unprepared
Unprepared's picture

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

Tue, 10/25/2011 - 21:21 | Link to Comment Taint Boil
Taint Boil's picture

I would like to buy a vowel please.

Tue, 10/25/2011 - 16:19 | Link to Comment 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 | Link to Comment Poule Mouillee
Poule Mouillee's picture

All through the power of one-click shopping.

Tue, 10/25/2011 - 16:42 | Link to Comment mynhair
mynhair's picture

Can you say 'Oweblahma voters'?

Tue, 10/25/2011 - 16:49 | Link to Comment 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 | Link to Comment lizzy36
lizzy36's picture

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

Tue, 10/25/2011 - 16:33 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

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

Tue, 10/25/2011 - 16:58 | Link to Comment 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 | Link to Comment 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 | Link to Comment Irish66
Irish66's picture

1973-1974

Tue, 10/25/2011 - 16:20 | Link to Comment 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 | Link to Comment SloMoe
SloMoe's picture

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

That's funny....

Tue, 10/25/2011 - 16:21 | Link to Comment 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 | Link to Comment bob_dabolina
bob_dabolina's picture

We all have a little schadenfreude. 

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

What's schadenfrude in German again?

Tue, 10/25/2011 - 16:27 | Link to Comment 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 | Link to Comment 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 | Link to Comment Stax Edwards
Stax Edwards's picture

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

Tue, 10/25/2011 - 16:36 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment bob_dabolina
bob_dabolina's picture

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

Tue, 10/25/2011 - 16:35 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Mitch Comestein
Mitch Comestein's picture

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

Tue, 10/25/2011 - 16:27 | Link to Comment RobotTrader
RobotTrader's picture

BRCM getting blowtorched.

Waiting on others.....

Tue, 10/25/2011 - 16:36 | Link to Comment YesWeKahn
YesWeKahn's picture

buy TYP afterHour.

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

RT, how many shares long were you AMZN?

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

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

Tue, 10/25/2011 - 16:57 | Link to Comment buzzsaw99
buzzsaw99's picture

zion and genworth were more fun to watch imo.

Tue, 10/25/2011 - 16:27 | Link to Comment Stochdoc
Stochdoc's picture

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

Tue, 10/25/2011 - 16:29 | Link to Comment qussl3
qussl3's picture

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

That will end well.

Tue, 10/25/2011 - 17:10 | Link to Comment 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 | Link to Comment Socrate
Socrate's picture

Another one bytes teh dust.

Tue, 10/25/2011 - 16:32 | Link to Comment 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 | Link to Comment Christoph830
Christoph830's picture

But CNBC told me we're seeing killer earnings across the board?

 

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

his mom let him out of the basement

Tue, 10/25/2011 - 16:35 | Link to Comment Debtless
Debtless's picture

Zyngas IPO will save us all.

{sarc off}

Tue, 10/25/2011 - 16:57 | Link to Comment 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 | Link to Comment 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 | Link to Comment TooBearish
TooBearish's picture

NO worries they'll make it up on volume

Tue, 10/25/2011 - 16:49 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

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 | Link to Comment SeverinSlade
SeverinSlade's picture

HFT Algo bashing resumes/continues tomorrow.

Tue, 10/25/2011 - 16:53 | Link to Comment 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 | Link to Comment mynhair
mynhair's picture

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

Tue, 10/25/2011 - 16:55 | Link to Comment 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 | Link to Comment Saxxon
Saxxon's picture

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

 

Tue, 10/25/2011 - 17:20 | Link to Comment YesWeKahn
YesWeKahn's picture

AMZN is probably a good 50-80$ stock, certainly not a 200$ stock.

Tue, 10/25/2011 - 19:13 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment virgilcaine
virgilcaine's picture

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

Tue, 10/25/2011 - 18:54 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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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