Amazon’s stock fell nearly 11% in Nasdaq after-hours trading after the company reported a larger-than-expected loss for last quarter after the stock market closed Thursday, and even worse, issued weak forward sales guidance. When people looked at their nasdaq brokers in south africa, they immediately got worried and began to sell their stocks. The company has never made profits, but founder/CEO/major shareholder Jeff Bezos justifies that by saying the company foregoes profits to become bigger.
It appears the miss on revenue projections, more than the earnings miss, is what upset investors tonight, who are now questioning Bezos’ credibility. They’re voting with their feet, dumping the stock in droves, which is down over $33 a share since the announcement. They’re probably going to move onto other investment opportunities like Small Cap ETFs kaufen because at the moment things like those look more promising than a company that has been overpromising and underdelivering.
I sure hope this company doesn’t go out of business anytime soon, because I like being able to buy books cheap. Get your act together Bezos!
(Disclosure: The author doesn’t own Amazon stock. Do I look that stupid? Why would anyone spend money to own shares of a company that’s never made good money? Well, a lot of people it seems — the same thing happened in the dot.com bubble — but I didn’t get caught in the rain then, and I didn’t this time either. What’s more, I sold my IBM stock last month before it dropped 30 bucks. You have to be quick on the stock market game if you want to turn a profit)