AMZN down almost 6% after hours

Well, what goes up must come down(?)

Could be a good buying opportunity…

This is key…

Revenue rose 29% to $32.71 billion year-over-year, …
Amazon Web Services sales jumped 55% to $3.23 billion year-over-year.

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"This is key…

Revenue rose 29% to $32.71 billion year-over-year, …
Amazon Web Services sales jumped 55% to $3.23 billion year-over-year."

Were these results below expectations?

Were these results below expectations?

No, sorry, I should have elaborated. I think the revenue growth is great and people are hung up on EPS. At this stage, EPS is meaningless for AMZN analysis.

As long as AMZN and AWS continue to grow revenue at this torrid pace, I’m okay.

A lot of people missed the AMZN rise of the last 6 months and are waiting to jump in on any weakness. The 7% decline AH will not last…

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"No, sorry, I should have elaborated. I think the revenue growth is great and people are hung up on EPS. At this stage, EPS is meaningless for AMZN analysis.

As long as AMZN and AWS continue to grow revenue at this torrid pace, I’m okay.

A lot of people missed the AMZN rise of the last 6 months and are waiting to jump in on any weakness. The 7% decline AH will not last…"

Thanks YouAreNumberSix! The results I looked at looked really good to me…just the 30 cents EPS versus expectation of 82 cents per share jumped out at me as possibly negative results. I guess it also didn’t help that the guidance was anywhere between $1 and $1.25 billion. But that actually made me chuckle a bit.

I am more of a long-term investor than a trader, so I’m fine with the results.

Thanks again!

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Their next Q guidance has a very range. Does this mean anything? (i.e. play safe to meet their own guidance)

Seems part of the issue
http://www.reuters.com/article/us-amazon-com-results-idUSKCN…

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‘A lot of people missed the AMZN rise of the last 6 months and are waiting to jump in on any weakness. The 7% decline AH will not last…’

Amazon (and many growth companies) routinely has 20-25% volatility within a given quarter - on no news. So yeah, this might not last or it might go down more, much more. Take a look at Q1 just this year. After being on a run up to $638, it dropped all the way down to $474. That’s forgotten by most as it feels like AMZN has just been going up. On a P/Sales perspective, it is trading above its normal range - it is around 3 right now. Though who knows - perhaps their trading range has expanded the last year with the reporting of AWS. From my perspective, guessing what a company will do in the short-term is just that - guessing and gambling if you are trying to trade on the guess.

Cheers,
Doug

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