Amazon has been doing fairly well and during the holiday season, the retail giant would have us believe that it was selling millions of items every hour. Now, quarterly results are out and Amazon has missed on some of the Wall Street expectations.
However, that doesn’t mean that the retail giant didn’t continue its growth or the profits were little. Rather, the company was able to muster total sales of $25.59 billion in the last quarter alone, which is a whopping 20% year-over-year growth. Granted, yes the Wall Street pundits were betting even higher on Amazon, hoping that it would bring home $26 billion in sales for the fourth quarter.
But such estimates are simply a result of being in the guessing business. Amazon still ensured earning of $0.51 per diluted share, which may not sound as glorious as what was predicted by several analysts, but still indicates good growth.
Since Wall Street tends to have a mind of its own, it often start believing its own estimates so much as to rely on them for major judgment calls. So when the Wall Street estimates proved overambitious about Amazon, the result was that Amazon’s shares were down by 10 percent during the later hours of the day.
Together with the announcement, Amazon’s CEO Jeff Bezos stated, ““It’s a good time to be an Amazon customer. You can now read your Kindle gate-to-gate, get instant on-device tech support via our revolutionary Mayday button, and have packages delivered to your door even on Sundays. In just the last weeks, Forrester, YouGov, and ForeSee have all rankedAmazon #1 – and we believe we’re just scratching the surface of what world-class customer service can be.”
Courtesy: Geekwire
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