WTF stocks (amazon earnings)

[momo]

hey stock folks, can someone explain this to me? i've been burned during earnings season enough and this sob takes the cake:

Amazon.com (AMZN) this afternoon reported Q4 revenue below analysts’ estimates but reported profit well above expectations. However, the company also forecast this quarter’s revenue well below consensus.

Revenue in the three months ended in December rose to $17.43 billion, yielding EPS of 38 cents.

Analysts had been modeling $18.26 billion in revenue and 17 cents EPS.

really? how the fuck is earning 38 cents (actual) against 17 cents expected per share is bad? fuck earnings, i want to use someone's head as a god damn bowling ball.

fucking stock is down ~$16 dollars afterhours.

[Nash B.]

Blame the analysts!

[slow99]

It's about guidance, not the print.

[ceyko]

Since I moved, I've been using Amazon a lot. Hopefully next quarter my hard earn money spent will reflect in .000000035 cent increase in stock for you.

[juiceweezl]

In a nutshell, higher profits are good, but when they come on less sales can be worrisome. Usually that means they scrapped something, fired a bunch of people, etc. They became more profitable on less sales, but those type gains/numbers may be harder to maintain. Investors want to see sales increases to "justify" the profit increase.

I'm with you -- a profit is a profit.

[slow99]

In a nutshell, higher profits are good, but when they come on less sales can be worrisome. Usually that means they scrapped something, fired a bunch of people, etc. They became more profitable on less sales, but those type gains/numbers may be harder to maintain. Investors want to see sales increases to "justify" the profit increase.

I'm with you -- a profit is a profit.

The guidance was shit. Too bad we don't have someone around here who does this for a living.

[yellowstang]

The guidance was shit. Too bad we don't have someone around here who does this for a living.

No shit, all we have are CPA's

[Broncojohnny]

If you bought Amazon because you believe in the company over the long term then who cares? If you bought it because you "thought it was going to go up" in the next week then you are probably fucked.

Personally, I could never buy a stock at 11 times book value and a 12% Return on Equity and an even worse Return on Invested Capital. To me that is an overvalued hot mess and the lowered guidance is just reality coming around.

[Alex]

If you bought Amazon because you believe in the company over the long term then who cares? If you bought it because you "thought it was going to go up" in the next week then you are probably fucked.

Personally, I could never buy a stock at 11 times book value and a 12% Return on Equity and an even worse Return on Invested Capital. To me that is an overvalued hot mess and the lowered guidance is just reality coming around.

my nijja, delivering pizzas paid off for you

[yellowstang]

Another bit of advice. never, ever, ever, buy a stock that is over $100. Ask my friend. He knows for a fact, you can't make as much money on them because if you invest say, $2000, you can't get as many of them as a stock that costs $10, or perhaps $15. Then when the stock goes up $2, he will make more money because he has more shares than your $100 stock.

Oh, and he has verified this with someone who is an independant broker/invstor...

[slow99]

Another bit of advice. never, ever, ever, buy a stock that is over $100. Ask my friend. He knows for a fact, you can't make as much money on them because if you invest say, $2000, you can't get as many of them as a stock that costs $10, or perhaps $15. Then when the stock goes up $2, he will make more money because he has more shares than your $100 stock.

Oh, and he has verified this with someone who is an independant broker/invstor...

Lmfao

[yellowstang]

Lmfao

I'm tellin' ya, several of us have tried to explain it to him, but he refuses and gets all pissed at us when we do. Says he is right and we are not thinking correctly.

[slow99]

I'm tellin' ya, several of us have tried to explain it to him, but he refuses and gets all pissed at us when we do. Says he is right and we are not thinking correctly.

Ask him what happens if they each move 10 percent.

[YALE]

I'm tellin' ya, several of us have tried to explain it to him, but he refuses and gets all pissed at us when we do. Says he is right and we are not thinking correctly.

What's his screen name?

[Alex]

Amat
Ba
Wft

All three of those are a value buy right now