Excuse my ignorance. Didn't they beat this number?
Amazon.com Inc. said Wednesday its fiscal third-quarter net income rose 48% to $118 million, or 27 cents a share, from $80 million, or 19 cents a share in the same period a year earlier. Revenue for the period ended in September rose 31% to $4.26 billion. Analysts on average had estimated that the online retailer would post earnings of 25 cents a share for the quarter, and $4.27 billion in revenue, according to FactSet Research.
They showed 27 cents vs. an expected 25 cents. Why the fire sale?
"What this probably means is that during a recovery type economy we should be able to look forward to margins approaching double digits, like 8, 9% thus confirming the thesis that Amazon will have much better than traditional retail margins."
How long have I been hearing that for? Will never happen.
And a lot of that was from non-retail segments. In retail, Ebay only grew 4% in revenue. Guess what happens going forward if Amazon keeps growing double digits while Ebay either stays flat or experiences NEGATIVE growth?
Ebay Maraketplace gross volume growth: