) shares based on quarterly earnings reports is like playing with
fire; if you did that for the company's Q2 earnings report after
the bell Thursday, you likely got your fingers burned. The
eCommerce giant posted a loss of 2 cents per share on revenues of
$15.70 billion, as compared to Zacks Consensus Estimates of a
profit of 4 cents per share and sales of $15.79 billion. Slight
miss on the top end but a pretty deep swoon in earnings, and into
negative territory for the third time in the past five quarters.
But CEO Jeff Bezos doesn't care about 3-month earnings
performances, and most investors don't either. Amazon has
expanded so far and wide from its earlier days as a simple
on-line book retailer it's scarcely recognizable anymore; Bezo's
game plan has always been about growth, plain and simple. The
idea, then, is to buy Amazon shares and hold them -- sometimes
for dear life -- for the long term. Those who've done so have
been richly rewarded, with AMZN share value having gone up
roughly ten million percent since the company's IPO in 1997. OK,
a bit of an exaggeration there.
Analysts covering Amazon earnings haven't even bothered making a
single estimate revision for the company's Q2, Q3, fiscal 2013 or
2014. Not one. Notably, the high estimate was for 18 cents per
share and the low was for -16 cents. And then everybody sat back
and waited for whatever was going to happen to happen.
Guidance for revenues between $15.45B - $17.15B is also a bit of
a downer; the Zacks Consensus is for $17.02B, so it's still in
the range... but not by all that much. Still, net sales were up
22% from a year ago, and $15.7 billion pretty much ensures the
company will be sticking around awhile.
Amazon is now joining forces with
) NBCUniversal to work out major video licensing deals, and its
Kindle products and App stores are still doing a healthy
business. So while other CEOs -- heck, just about every single
one of them -- might shy away from continuing to build out their
company's infrastructure so massively, Bezos looks for now to be
sticking with his gameplan. And caring whether after-market
traders sell off their AMZN shares (they have, but only a little)
is not part of that gameplan.
AMAZON.COM INC (AMZN): Free Stock Analysis
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