Amazon shares plunge as record profit still misses estimates

Amazon_reuters_640-624x351
- Advertisement -

Amazon.com Inc posted its most profitable quarter ever but the world’s No. 1 online retailer still managed to disappoint Wall Street by badly missing estimates, sending its shares down more than 13 percent in after-hours trading.

The results, as well as the company’s determination to invest more in new areas and its extremely low profit margins, brought back perennial questions for investors about the company’s ability to consistently earn money.

“By comparative retail standards, Amazon’s level of profitability is still painfully weak,” said Neil Saunders, head of retail analyst firm Conlumino, who is still positive on Amazon’s prospects. “For every dollar the company takes, it makes just 0.75 of a cent in profit.”

Amazon’s net profit for the fourth quarter, which includes the holiday shopping season, rose to $482 million, or $1.00 per share, in the quarter ended Dec. 31, up from $214 million, or 45 cents per share, a year earlier.

That figure was held back by rising operating costs. It was well below analysts’ average forecast of $1.56 per share, according to Thomson Reuters I/B/E/S.

The company’s shares plunged 13 percent to $551.50 after hours on Thursday, following a 9 percent increase in regular trading. They are still up 80 percent over the past 12 months.

Amazon notched its third consecutive profitable quarter for the first time since 2012, but it still left Wall Street wanting more.

“The growth story that investors were looking for… clearly Amazon has not been able to live up to the hype,” said Adam Sarhan, chief executive of Sarhan Capital.

Reuters


- Advertisement -

Related Articles

What is SLED, how realme gave TV industries a new look with the help of this technology?

Realme has also made a strong place in the TV segment after smartphones. The company has used SLED technology in its TV segment which...

PUBG Mobile will not return to India, PUBG Mobile Ban in India Permanent for now

PUBG News: Several Chinese apps were banned by the Indian government, including the popular Battle Royal game PUBG Mobile. The game had a large...

Samsung Galaxy A42 5G may be launch with the latest Snapdragon 750G processor, the report reveals

Samsung's upcoming smartphone Samsung Galaxy A42 5G has been in the discussion for a long time. Recently...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Stay Connected

43,179FansLike
535FollowersFollow
45,700SubscribersSubscribe

Latest Articles

What is SLED, how realme gave TV industries a new look with the help of this technology?

Realme has also made a strong place in the TV segment after smartphones. The company has used SLED technology in its TV segment which...

PUBG Mobile will not return to India, PUBG Mobile Ban in India Permanent for now

PUBG News: Several Chinese apps were banned by the Indian government, including the popular Battle Royal game PUBG Mobile. The game had a large...

Samsung Galaxy A42 5G may be launch with the latest Snapdragon 750G processor, the report reveals

Samsung's upcoming smartphone Samsung Galaxy A42 5G has been in the discussion for a long time. Recently...

How To Protect Your Smartphone From Hackers, then follow these Tips

protect your smartphone from hackers: Smartphone usage has increased sharply in the Corona era, so hacking cases...

Vivo launched its first Smartwatch Vivo Watch equipped with a heart rate and blood oxygen sensor

Vivo has launched its first smartwatch Vivo Watch. This latest smartwatch has been made available in 42mm...