A Record Setting Holiday Season Does Not Save Amazon's
), reported earnings after the bell today. EPS was $0.51,
significantly below the Zacks Consensus Estimate of $0.71; while
Revenues came in at $25.59 billion, below the Zacks Revenue
Estimate of $26.05 billion.
During the day, AMZN's stock rose over 5% on heavy volume in
anticipation of a strong earnings announcement. But, both
North American sales (accounting for $15.3 billion), and
International sales (accounting for $10.2 billion) were down from
the previous year. Moreover, the Media division posted
decreased revenue both domestically, and
A strong growth area was Amazon Prime, which boasted over a
million new subscribers during the holiday season.
Furthermore, it is estimated that the company will add another 5
million new subscribers each year over the next several
years. But with the weaker than expected Media numbers, it
appears as though the holiday subscribers were only interested in
the shipping discount. More importantly, it now seems as
though Amazon has lost ground to
) in the streaming media category. Finally, management gave
revenue guidance between $18.2 billion and $19.9 billion for Q1
2014, which is slightly below previous expectations.
In afterhours trading, Amazon has dropped over 10% on
increased volume. Tomorrow morning Zacks will publish a full
detailed earnings report.
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