E-commerce giant Amazon.com (AMZN) brought in lower revenues than expected for the second quarter in a row. The company’s $17.43 billion marked a 35% increase year over year, but it was well off the $18.25 billion expected in the Zacks Consensus.
As a result, AMZN shares tumbled 10% in the after-market almost immediately, after seeing a 1.2% gain in the regular trading session Tuesday. Traders have eased up a bit on selling the stock since the initial impact. Share are currently down around 8% from its Tuesday closing price.
In Amazon’s fiscal 4th quarter, both Media and International segments underperformed. In the company’s previous quarter, higher costs were cited as responsible for its 39% miss on the bottom line.
Analysts ahead of earnings had been lowering estimates, with 3 downward revisions made on the stock in the past 30 days, 1 of which came in the past week. But in Tuesday trading, after hitting a sub-$190 per share price, investors began to turn a bit more hopeful and set a steady uptrend from about 2pm Eastern until the closing bell. The stock finished the regular trading day at $194 and change, still well back from AMZN’s 52-week high.
Electronics and merchandise — which includes the Kindle Fire tablet that was rolled out for last year’s holiday shopping season — brought in $10.9 billion, which was in-line with analysts’ expectations. Clearly, however, retail sales were not enough to make up for the lagging International and Media businesses this time around.
To read this article on Zacks.com click here.
Zacks Investment Research
