AMZN profit?!?!

Investment Analysis Clubs Saul’s Investing Discussions
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In case anyone was questioning Saul’s recent purchase of AMZN, it is off to a nice start.

Nicely off-setting the SKX hit after hours.

The world’s biggest online retailer reported a profit of $79 million, or 17 cents per share, for the third quarter ended Sept. 30, compared with a loss of $437 million, or 95 cents per share, a year earlier.

Total net sales rose 23.2 percent to $25.36 billion.

Expects record holiday season

Business Wire Amazon.com, Inc.
9 minutes ago

SEATTLE–(BUSINESS WIRE)–

Amazon.com, Inc. ( AMZN ) today announced financial results for its third quarter ended September 30, 2015.

Operating cash flow increased 72% to $9.8 billion for the trailing twelve months, compared with $5.7 billion for the trailing twelve months ended September 30, 2014. Free cash flow increased to $5.4 billion for the trailing twelve months, compared with $1.1 billion for the trailing twelve months ended September 30, 2014. Additional measures of free cash flow can be found in the Supplemental Financial Information and Business Metrics.

Common shares outstanding plus shares underlying stock-based awards totaled 489 million on September 30, 2015, compared with 481 million one year ago.

Net sales increased 23% to $25.4 billion in the third quarter, compared with $20.6 billion in third quarter 2014. Excluding the $1.3 billion unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 30% compared to third quarter 2014.

Operating income was $406 million in the third quarter, compared with operating loss of $544 million in third quarter 2014.

Net income was $79 million in the third quarter, or $0.17 per diluted share, compared with net loss of $437 million, or $0.95 per diluted share, in third quarter 2014.

For the first time, were recommending you bring home a six-pack for the whole family, said Jeff Bezos, founder and CEO of Amazon.com. At a price of $50 for one or $250 for a six-pack, Fire sets a new bar for what customers should expect from a low-cost tablet. This is one more step in our mission to bring customers premium products at non-premium prices. Fire is the #1 best-selling product on Amazon.com since launch, and based on the strength of the customer response, we are building millions more than wed already planned.

Kevin

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My favorite part was the guidance

“Operating income is expected to be between $80 million and $1.28 billion, compared to $591 million in fourth quarter 2014.”

Just goes to show, they can decide to profit almost anytime they want. Just a matter of how much they want to reinvest in the business, and of course making sure that reinvestment will actually drive continued profit growth down the road.

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Nicely off-setting the SKX hit after hours.

Well…up 10% on a small holding vs down 30% on a large holding is not much of an off-set :wink:

The good news is that this will give people confidence that a trend has finally started. More big boys will put it in their funds. More Fools and fools will buy it. It is probably still investable immediately even with a 10% bounce.

Old high was $580, hit $620 AH. Today before the market close it was fairly flat but volume was 2x normal.

Chart Chat:
This is definitely an “IBD” breakout tomorrow. It has an nice rounded base lasting about 13 weeks, got close to its old highs of $580 the other day and faded a bit “as weak holders sold to break even”. Tomorrow there are no sellers.

Look at that weekly chart in the middle. Love those two previous breakouts that paused with a tight flat base only to rocket out again like a tight spring being released. This last time, the pop could not hold its initial highs and the resulting reset was pretty choppy. Not nearly as enticing as the previous two. But again, I think this makes people believe in the trend and we are in good shape.

http://stockcharts.com/freecharts/gallery.html?amzn

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A wonderful discussion about Amazon’s Free Cash Flow, or lack of, by Mungofitch if anyone is interested.

Alex

http://discussion.fool.com/on-the-other-hand-amzn-generated-almo…

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