Amazon.com, Inc. misses by $0.18, misses on revenue


Amazon.com, Inc. (AMZN): Q4 EPS of $0.51 misses by $0.18.

Revenue of $25.59B (+20.3% Y/Y) misses by $470M.

Shares -7.4%.

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Comments (49)
  • criticalbear
    , contributor
    Comments (84) | Send Message
     
    this is a HUGE miss. I hope investors will acutally punish Amazon...

     

    lol who am i kidding up 10% tomorrow. didn't even give back the gains they made today.
    30 Jan 2014, 04:09 PM Reply Like
  • fuzzymc
    , contributor
    Comments (198) | Send Message
     
    Some day don't they have to make money instead of just selling things??
    30 Jan 2014, 04:14 PM Reply Like
  • jmjjmj1
    , contributor
    Comments (183) | Send Message
     
    exactly they'll be up at least 10% tomorrow I quit shorting them about $100 ago...too many misses followed by huge gains next day.
    30 Jan 2014, 04:14 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (8135) | Send Message
     
    This is the knife in the heart of the entire Amazon story. "We are sacrificing earnings temporarily for sales growth."

     

    20% y/y revenue is mediocre at best considering AMZN has yearly earnings of 59c a share for a TTM P/E of 678 pre-earnings (at $400).

     

    AMZN dropped to $370, but is catching support. This is absolutely insane... Stock should be down 30-40%.
    30 Jan 2014, 04:15 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33813) | Send Message
     
    There are probably 1 million universes where AMZN is not trading above $100, but we are in the one where it trades close to $400. Someone forgot to adjust this universe so that AMZN actually has the earnings to go with the share price, though :-).
    30 Jan 2014, 04:17 PM Reply Like
  • Transcripts&10-K's
    , contributor
    Comments (1215) | Send Message
     
    Wal-Mart's e-commerce business grew at 1.5X Amazon's rate in Q4; coming off a smaller base, but reality is about to start sinking in - competing with WMT will not be a breeze for AMZN...
    30 Jan 2014, 04:21 PM Reply Like
  • labas112
    , contributor
    Comments (496) | Send Message
     
    Its probably in one of those universes that does not have QE too. LOL
    30 Jan 2014, 04:26 PM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1838) | Send Message
     
    Or a universe where Pandora pops 10 percent based of FB results...
    30 Jan 2014, 04:33 PM Reply Like
  • coastside1000
    , contributor
    Comments (119) | Send Message
     
    Interesting you compare to Wal-Mart. I was shopping around for premium engine oil for my car. Searched for Pennzoil Ultra 5w-30. A 5 quart container sells on Amazon for $49.19, which of course they will ship for free given that order is more than $35. http://amzn.to/1aKZheU I ended up ordering from Wal-Mart oline. They offer the same product for only $27.97. http://bit.ly/1aKZhvo The ALSO offered free shipping (for orders over $50). I ordered three containers and saved about 45 percent by buying from Wal-Mart vs. Amazon, and got free delivery.

     

    Even if you only want 1 bottle, in which case you're not spending enough to get free shipping through Wal-Mart, you can purchase and pick up in store for free. Amazon can't compete with that. For the record, if Amazon offered the product at the same price as Wal-Mart, they wouldn't offer it with free shipping either, since they're minimum spend for free shipping is $35. Amazon buyers only meet the free shipping threshold by paying a much, much higher price.
    Competition is real.
    30 Jan 2014, 04:42 PM Reply Like
  • burtonstl
    , contributor
    Comments (2) | Send Message
     
    Note that the links you provide are for 6-quarts on Amazon vs. 5 quarts on Wal-Mart. Wal-Mart still beats Amazon on a price-per-quart basis.

     

    It's an interesting example that illustrates how Wal-Mart's deeper relationships with suppliers often means they can acquire products in exclusive formats that make it more cost-effective to buy/sell/ship and also more difficult to consumers to compare directly.
    30 Jan 2014, 07:33 PM Reply Like
  • coastside1000
    , contributor
    Comments (119) | Send Message
     
    You're right, nice catch. The comparison is $8.20/qt at Amazon vs. $5.59/qt at Wal-Mart, a 32 percent savings (despite the fact that Amazon's pricing is for a higher quantity bundle). In any case, Wal-Mart is clearly a significant threat to Amazon's retail business, and the argument that Amazon has an insurmountable moat because it's online and has free shipping doesn't hold up.
    30 Jan 2014, 09:56 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33813) | Send Message
     
    The argument that AMZN has a moat because it doesn't need to have profits is even better.

     

    It gets to be something along the lines "AMZN will be hugely profitable because it doesn't have to have profits like the others".
    30 Jan 2014, 10:08 PM Reply Like
  • coastside1000
    , contributor
    Comments (119) | Send Message
     
    Another important point is that this is not simply a function of Wal-Mart's deep relationships with suppliers (which they do have). If you look at Pennzoil Platinum 5w30 at Autozone (they don't offer the Ultra it seems) and compare with Amazon, you will see that it's cheaper at Autozone, and you can get free shipping on any order if you pick up in store. If you spend $75 you get free shipping, too. Interestingly, if you shop at Autozone's ebay store site, you can get free shipping with a spend of only $25, which beats Amazon all around. So competition is not limited to Wal-Mart.

     

    Finally, regarding the math, it turns out Amazon's 6 quarts is exactly 6 quarts, but the 5 qt jug at Wal-Mart and Autozone is actually 5 liters, which is 5.28 quarts, so Amazon's pricing is even less competitive per unit volume of oil.
    30 Jan 2014, 10:37 PM Reply Like
  • Lares Capital
    , contributor
    Comments (438) | Send Message
     
    Just think for a second how bad the results would have been if the weather was better. The story was until now that consumers stayed home and bought online.
    30 Jan 2014, 04:16 PM Reply Like
  • name999
    , contributor
    Comments (191) | Send Message
     
    Yahoo investors who felt disappointed with Alibaba's result should feel much better now. The next report (2013, Oct-Dec) from Alibaba will blow you out. That quarter usually takes more than 40% of Alibaba's annual revenue.
    30 Jan 2014, 04:19 PM Reply Like
  • Nathan Brooks
    , contributor
    Comments (559) | Send Message
     
    revenue growth was 22% after adjusting for foreign exchange losses. Isn't that higher than you forecast Paulo?
    30 Jan 2014, 04:23 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33813) | Send Message
     
    No - the revenue growth number AMZN puts out is not adjusting for the ebook accounting change, so it's impossible to know what the REAL revenue growth was (which we could then compare to the 14.3-17.9% put out by the model).
    30 Jan 2014, 04:26 PM Reply Like
  • Tyro1
    , contributor
    Comments (41) | Send Message
     
    Also this year was the year of consoles. (PS4 and XBOX)
    30 Jan 2014, 04:29 PM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1838) | Send Message
     
    Paulo, any idea what next year might be? 10?
    30 Jan 2014, 04:34 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33813) | Send Message
     
    Too early, but by Q2, Q3, some deceleration should be evident from lapping up 2013.
    30 Jan 2014, 04:42 PM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1838) | Send Message
     
    Stock at 350 still up from 1998 price. Still a buy!

     

    - Gary
    30 Jan 2014, 04:24 PM Reply Like
  • psychological-dividends
    , contributor
    Comments (820) | Send Message
     
    I'm confused. EPS is positive. So are they profitable?
    30 Jan 2014, 04:25 PM Reply Like
  • positivethoughts
    , contributor
    Comments (2064) | Send Message
     
    This quarter was profitable. I dont know about the whole year. I dont ever look at their financials. The snapshot shows TTM earnings of $0.29 and a current share price of $403. So, investors are paying $1389 for $1 of earnings.
    30 Jan 2014, 04:35 PM Reply Like
  • Bouchart
    , contributor
    Comments (1101) | Send Message
     
    We'll see what happens at the opening bell tomorrow. Part of me thinks AMZN will rebound for no reason, and another part thinks that AMZN will crater. The stock hasn't made any sense thus far and there's no reason to think tomorrow will be different.
    30 Jan 2014, 04:26 PM Reply Like
  • ReligiousWacko
    , contributor
    Comments (1838) | Send Message
     
    So true. I think fair price should be 60-80 if one is optimistic but not insane...
    30 Jan 2014, 04:35 PM Reply Like
  • june1234
    , contributor
    Comments (4353) | Send Message
     
    That co has never been about earnings. Its always been a stock appreciation for investors and employees story. Everybody uses and loves AMZN.
    30 Jan 2014, 04:27 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33813) | Send Message
     
    Yes, because the stock can continue to go up no matter what the earnings, right??
    30 Jan 2014, 04:33 PM Reply Like
  • $vix
    , contributor
    Comments (638) | Send Message
     
    Search the internet. You'll find hundreds of pages of complaints against Amazon. I no longer use them as they do not offer competitive pricing ( read my last post or my reply to Gary J) and with nearly every vendor offering free shipping, why should I pay amazon for prime. Better streaming can be found at Netflix and if you want free video and movies Hulu and Crackle have thousands of movies and tv shows complelely free of charge. As competition grows, there is less and less reasons to shop or use amazon. I am quite tired of their pushy hard sell on every item.
    30 Jan 2014, 04:34 PM Reply Like
  • abdullah999
    , contributor
    Comments (895) | Send Message
     
    Wait, Amazon's stock price can actually go down? There's something wrong with the matrix...
    30 Jan 2014, 04:41 PM Reply Like
  • $vix
    , contributor
    Comments (638) | Send Message
     
    Read my last post and reply to Gary J. on amazon. There is no real reason to shop there. Far, Far better pricing is found everywhere else and most vendors offer free shipping without having to pay for it like amazon. Netflix is far superior when it comes to streaming, reliability of that stream and user interface.
    Just on my last weekends purchases alone, I saved $500+ dollars by shopping a bit smarter at the Microsoft store, ebay and the local Tru-Value hardware store and avoiding amazon. The only reason to shop amazon is if you want to overpay.
    With the massive holiday season and they grow revenue by only 20% and they make no money. Amazon has over 3 billion in debt and continually loses money. They would not have enough cash on hand to satisfy their suppliers or their debt.
    Oddly enough, Bezos will put some spin on it, Wall Street will lap it up and the stock will resume its uptrend.
    The reality is that the stock should be trading at the sub $100 level based upon its fundamentals, its debt and financial position.
    30 Jan 2014, 04:27 PM Reply Like
  • Renmycat!
    , contributor
    Comments (905) | Send Message
     
    no worries, Gary J will rescue all AMZN longs!
    30 Jan 2014, 04:31 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (6254) | Send Message
     
    nothing but brutal carnage in after hours
    30 Jan 2014, 04:39 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (6254) | Send Message
     
    HOW LOW CAN IT GO?
    30 Jan 2014, 04:39 PM Reply Like
  • PSalerno
    , contributor
    Comments (6086) | Send Message
     
    The miss was on revenue, good for short calls expiring this month.
    30 Jan 2014, 04:40 PM Reply Like
  • AutoRegressive
    , contributor
    Comments (240) | Send Message
     
    It's already rebounding in AH. This stock defies everything. I'm short at $375. Was excited to exit at with some nice profit.
    30 Jan 2014, 04:52 PM Reply Like
  • StepUp
    , contributor
    Comments (548) | Send Message
     
    The stock will probably close up on Friday.
    30 Jan 2014, 04:56 PM Reply Like
  • StepUp
    , contributor
    Comments (548) | Send Message
     
    I retract this.... It may OPEN up tomorrow. wow.
    30 Jan 2014, 05:30 PM Reply Like
  • Just_waiting_for_profit
    , contributor
    Comments (25) | Send Message
     
    opportunity to buy in my opinion!
    30 Jan 2014, 05:13 PM Reply Like
  • Johnwoods41
    , contributor
    Comments (177) | Send Message
     
    Let's see if any analysts drop their price targets, that will be key from here, but given they have lowered fwd guidance vs estimates that is a worry
    30 Jan 2014, 05:13 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33813) | Send Message
     
    They'll drop 2014 EPS estimates, but surely NOT the targets.
    30 Jan 2014, 05:27 PM Reply Like
  • tasosnikic
    , contributor
    Comments (4) | Send Message
     
    Suddenly Apple doesn't look so bad now, does it?
    30 Jan 2014, 05:13 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (6254) | Send Message
     
    was this their worst miss ever?
    30 Jan 2014, 05:19 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (6254) | Send Message
     
    Maybe Bozos can do some damage control in the conference call in order to stop the bleeding
    30 Jan 2014, 05:20 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33813) | Send Message
     
    Bezos is never in the call, but AMZN must have said something magical like "we like what we're seeing", because the stock recovered most of the losses already.
    30 Jan 2014, 05:28 PM Reply Like
  • ptnyc
    , contributor
    Comments (79) | Send Message
     
    A $239 million dollar profit over the whole year--wow, kind of pathetic! Apple makes that much profit every day and a half--$13 billion for a quarter, 13 weeks in a quarter, $1 billion a week, $140 million a day!
    While I love the convenience of Amazon, I cringe at the end game of retail shopping that Amazon is chasing: destruction of all local mom and pop stores via cutthroat pricing and the eventual monopoly for goods that they need so they can finally raise prices and become profitable. Not a world I'd like to live in.
    30 Jan 2014, 05:21 PM Reply Like
  • Paulo Santos
    , contributor
    Comments (33813) | Send Message
     
    Since AMZN is just a channel that's impossible to happen.
    30 Jan 2014, 05:29 PM Reply Like
  • Johnwoods41
    , contributor
    Comments (177) | Send Message
     
    Raising the cost of prime! That is bad news very bad news, but probably good for netflix????
    30 Jan 2014, 05:59 PM Reply Like
  • Johnwoods41
    , contributor
    Comments (177) | Send Message
     
    This potential price increase in prime is going to kill them, people love prime because it's the wrong price !
    30 Jan 2014, 05:59 PM Reply Like
  • Nathan Brooks
    , contributor
    Comments (559) | Send Message
     
    In England we have to put up with a non-prime number for Prime: £49.
    30 Jan 2014, 08:02 PM Reply Like
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