Online Retailers Build Momentum Ahead of Holidays

• By the tickerspy.com Staff
• On 11:20 am EDT, Friday October 23, 2009

The online retail sector was mixed this week after a slew of earnings reports.

Amazon.com (NASDAQ: AMZN - News) shares are surging by over 20% today after the company announced a 62% spike in third-quarter profit. The company earned $199 million or 45 cents a share during the period, crushing analysts' expectations of 30 cents in EPS. Amazon noted that the Kindle e-book reader is the company's best selling product, but neglected to provide further details, according to the Associated Press. The company also guided above consensus estimates for fourth-quarter revenue, now predicting between $8.13 and $9.13 billion.

Online auction giant eBay (NASDAQ: EBAY - News) set the bar low earlier this week, reporting a -29% decline in Q3 net income. The stock is set to finish negative for the week.

As a whole, the Dotcom Retailer Stocks Index is ahead by 3.5% this week, pushing it ahead of the S&P 500 over the last month.

Elsewhere in the sector, Netflix (NASDAQ: NFLX - News) reported $30.1 million in Q3 net income, or 52 cents a share. According to the AP, the stock sold off by -5% after hours Thursday on the announcement, but shares are up 10% in today's session.

Stamps.com (NASDAQ: STMP - News) said that its Q3 revenue was flat compared to the same period last year, and adjusted EPS came in at 17 cents. President and CEO Ken McBride said, "We were pleased our non-GAAP earnings per share were the strongest they have been in a year." Shares are adding 6.5% on the report, pushing the stock out of the red for the week.

1-800-Flowers.com (NASDAQ: FLWS - News) is also set to end the week higher after its fiscal first-quarter earnings impressed investors before the bell on Thursday.

Online diamond retailer Blue Nile (NASDAQ: NILE - News) is up by 8% this week, making it the top performing jewelry stock for the period.

Online travel sites Expedia (NASDAQ: EXPE - News) and Priceline.com (NASDAQ: PCLN - News) are also top performers over the last five days. The former will report its earnings before the bell on October 29.

As of this writing, the Dotcom Retailer Stocks Index is one of top-30 tickerspy Indexes over the last month. It will be interesting to observe the sector's performance heading into the crucial holiday shopping season.

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