Posts Tagged ‘Amazon’

Goodnight Amazon: World’s Most Overhyped Retailer Misses Top and Bottom Line

Courtesy of Tyler Durden

All one can say is oops. That margin compression sure does suck:

  • Q4 EPS USD 0.91 vs. Exp. USD 0.88
  • Q4 net sales USD 12.95bln vs. Exp. USD 13.03bln
  • Net sales are expected to be between $9.1 billion and $9.9 billion, or to grow between 28% and 39% compared with first quarter 2010
  • Operating income is expected to be between $260 million and $385 million

We have yet to see snow being blamed for the After Hour stock collapse

Full release:

Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its fourth quarter ended December 31, 2010.

Operating cash flow increased 6% to $3.50 billion for the trailing twelve months, compared with $3.29billion for the trailing twelve months ended December 31, 2009. Free cash flow decreased 14% to $2.52 billion for the trailing twelve months, compared with $2.92 billion for the trailing twelve months ended December 31, 2009.

Common shares outstanding plus shares underlying stock-based awards totaled 465 million on December 31, 2010, compared with 461 million a year ago.

Net sales increased 36% to $12.95 billion in the fourth quarter, compared with $9.52 billion in fourth quarter 2009. Excluding the $139 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales would have grown 37% compared with fourth quarter 2009.

Operating income was $474 million in the fourth quarter, compared with $476 million in fourth quarter 2009. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $18 million.

Net income increased 8% to $416 million in the fourth quarter, or $0.91 per diluted share, compared with net income of $384 million, or $0.85 per diluted share, in fourth quarter 2009.

“Thanks to our customers, we achieved two big milestones,” said Jeff Bezos, founder and CEO of Amazon.com. “We had our first $10 billion quarter, and after selling millions of third-generation Kindles with the new Pearl e-ink display during the quarter, Kindle books have now overtaken paperback books as the most popular format on Amazon.com. Last July we announced that Kindle books had passed hardcovers and predicted that Kindle would surpass paperbacks in the second quarter of this year, so this milestone has come even sooner than we expected – and it’s on top of continued growth in paperback sales.”

Full Year 2010

Net sales increased 40% to…
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There Goes Those Fancy eBook Aspirations from Apple, Barnes and Noble, and Amazon: 100,000’s of FREE eBooks from the Public Library

There Goes Those Fancy eBook Aspirations from Apple, Barnes and Noble, and Amazon: 100,000’s of FREE eBooks from the Public Library

Courtesy of Reggie Middleton, writing at Zero Hedge 

Sometimes the best laid plans can be put out to pasture due to a lack of foresight in regards to the ever changing, liquid landscape known as the Internet. What fascinates me so much about the Web is that it is the great democratizer, it brings down the barriers to entry and allows for unfettered information flow. For instance, who would have thought that your local public library could lay low the massive aspirations media and retail titans such as Amazon, Barnes and Noble, and Apple? Put simply, why would you buy an eReader from these vendors for several hundred dollars, then go ahead and spend more money buying the eBooks for said reader when you can simply download the books from your local public library’s website into the equipment you already have? Okay, I know why those Apple heads would do it – because they want to spend money on Apple products,,, the eBooks may look cooler with that shiny Apple logo-thingy indicating that you too have donated unnecessarily to the Steve Jobs’ enrichment fund, but how about the rest of the vendors???

As a matter of fact, you can kill several birds with one stone simply by buying one of the recent Android phones. Google is really on to something here, and the growth potential of Android is simply phenomenal. When those Android tablets get moving at Kmart for $100… Whoops, there goes that Amazon Digital eBook business model.

Attention Kmart shoppers: $149 Android tablet on aisle 5 The Android OS isn’t just powering high end smartphones, it also runs barebones tablets sold at Kmart for the price of an iPod nano.

Think about this! Hundreds of thousands of titles freely and legally downloadable from your local public library to play on your $150 tablet with standard ports, HD video, the whole 9 yards, or maybe just on your cell phone. Android can scale pretty high in the capability department and reach rather low in the price category as well.

NY’ers, check this out from your NYC Public Libraries:

These books use DRM protection administered by Overdrive. Guess what platforms they won’t play on (okay, I’ll spoil it for you – the two front runners in the
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It Would Sell Itself If They Had Just Called It “Nookie”

TLP: It Would Sell Itself If They Had Just Called It "Nookie"

Courtesy of Jr. Deputy Accountant 

electronic readers

The appeal of Amazon has always been that you don’t have to get off your ass to shop. Excellently lazy. Barnes & Noble, meanwhile, puts the lazy into its stores with big chairs and Starbucks cafes. Now that both booksellers have electronic readers – and what could be lazier than turning pages with your thumb? – the smackdown is on.

And B&N is making its play by both going old school and looking ahead.

NYT:

In September, the chain will begin an aggressive promotion of its Nook e-readers by building 1,000-square-foot boutiques in all of its stores, with sample Nooks, demonstration tables, video screens and employees who will give customers advice and operating instructions.

By devoting more floor space to promoting the Nook, Barnes & Noble is playing up what it calls a crucial advantage over Amazon in the e-reader war: its 720 bricks-and-mortar stores, where customers can test out the device before they commit to buying it.

“I think that’s everything,” William Lynch, chief executive of Barnes & Noble, said in an interview. “American consumers want to try and hold gadgets before they purchase them.”

Amazon’s Kindle e-reader is for sale on Amazon.com and in Target and HMSHost stores.

Barnes & Noble has already installed small counters in its stores where customers can test out the Nook. The new display space would be much larger, and it would be located next to each store’s cafe, to encourage customers to stop by the Nook space, coffee or tea in hand.

Points for placement, B&N. And points for foresight in making room for the expanded Nook boutiques by clearing out some of the CD bins. (Can you remember the last time you bought a CD?) Pretty soon, B&N will be thinking about moving all the music online.

Just like, uh, Amazon. 


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DARK HORSE HEDGE UPDATE

DARK HORSE HEDGE UPDATE 

Black and white tilted view of horse grazing in meadow with wooden fence in foreground

By Scott at Sabrient and Ilene of PSW

You can run, you can run, tell my friend-boy, Willie Brown.
You can run, tell my friend-boy, Willie Brown.
Lord, that I’m standin’ at the crossroad, babe,
I believe I’m sinking down.

- Crossroads, Robert Johnson

Heading into Friday July 23, 2010 the market is again at a technical crossroad with the SPX closing Thursday at 1093.7, above the 50-day Moving Average of 1085.5. The MACD 12-26-9 remains close but still under the (zero) signal line at -1.13, with the RSI 14-day at 45.26.  There is lateral resistance at the 1096 level from the close last Thursday showing how the market has traveled a long way the past week to get nowhere.

Amazon.com Inc. (AMZN) fell short of analysts’ forecasts after Thursday’s close and was down 14% in after-hours trading, suggesting that the market may follow the pattern it has been in most of the summer.

Up 200, down 200, up 200, down 200 - wash out your savings, rinse and repeat!  What a total sham of a market we have these days with machines running us up and down on virtually no news at all.  Yesterday they would have you believe that Ben Bernanke caused a sell-off. How ridiculous is that?  He didn’t say one thing that he didn’t already say in the Fed Minutes that were released on the 14th, which were the notes from the meeting of June 23rd so for analysts to get on TV and say “the markets were concerned by the Chairman’s comments” is beyond stupid – it’s criminal negligence.  Phil’s Thrill-Ride Thursday.


[chart from freestockchart.com]

Thursday’s economic releases were less than encouraging with a jump in the number of people seeking unemployment benefits. Sales of previously owned homes fell, but the market shrugged it off as seasonal and rallied on the earnings of Caterpillar Inc., UPS Inc., and others that beat estimates. However, the SPX hasn’t been able to break through resistance at 1096 and essentially has gone nowhere since last Thursday.…
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The Danger of Earnings Season Extrapolation

The Danger of Earnings Season Extrapolation

gulliver

Gulliver and the Lilliputions

Yes, we all get excited when an Amazon.com scorches their earnings forecast or when an Apple Inc. Suge Knights the whole sell-side with a massive beat, but should that enthusiasm really spread to other stocks?

One of the dangers of extrapolating the good earnings reports out of Apple, Amazon or Intel is that in reality, these three companies have no real competitors.  I know they pretend they do (or even imagine they do), but trust me, they don’t.  Let’s take them one by one.

Apple Inc. (AAPL)

Apple has a monopoly – on Apple products!  They don’t compete with Dell for the simple reason that Dell doesn’t sell iPhones or Mac laptops, they only sell Dell stuff.  Hewlett-Packard, while a great company in their own right, also doesn’t sell iPods or own the world’s most important music store (iTunes). 

Apple is a de facto monopoly and so their results are only very indirectly meaningful to the sellers of any other personal technology products.  In fact, their success can be downright detrimental to the results of others (go ask Nokia or whatever jackass is working on the next iteration of the Microsoft Zune).

Amazon.com (AMZN)

The Buffetts of the world prefer owning companies that have a wide moat, meaning they have a barrier against other companies who would look to compete.  Amazon has moat that is filled, not unlike its titular river, with enough piranhas to eat any pretender alive who dares to set up shop.  Oh, and the piranhas in Amazon’s moat are armed to the teeth and carry an especially lethal venom containing a mixture of swine flu, asbestos and arsenic.  

There’s a digital graveyard somewhere in Silicon Valley filled with the remains of such pretenders, like eToys, Buy.com, CDNow and anyone else still hanging around.  And don’t get me started on Barnes and Noble, I buy and read 50 or 60 books a year and I still don’t even know their e-store’s URL.

poodleIntel (INTC)

Referring to AMD versus Intel as a David and Goliath situation is being way too generous.  In actuality, Intel’s Goliath is really battling David’s pet poodle, named Pumpernickel.  AMD has been nipping at Intel’s ankles for as long as I’ve been in the business, to


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NASDAQ Win Streak Will Crash To A Halt

Click here for a FREE, 90-day trail subscription to our PSW Report!  

NASDAQ Win Streak Will Crash To A Halt (MSFT, AMZN)

Courtesy of clusterstock, bull tipped overCourtesy of Joe Weisenthal at Clusterstock

Well, we don’t know for sure that the NASDAQ’s winning streak will come to an end… but when you have Microsoft (MSFT) and Amazon (AMZN) both tanking after hours on disappointing earnings reports, you kind of know tomorrow is going to be a down day.

Microsoft, in particular, missed by a mile and since they’re still so huge, that itself could doom the NASDAQ right there.

microsoft earnings

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Kimble Charting Solutions

Will Bond Yields Fastest Rise In 50 Years Rattle Markets?

Courtesy of Chris Kimble

The waterfall decline of bond yields (and interest rates) has been met with an equally steep rally.

In fact, the 10-Year US Treasury bond yield is up 131% in 45 weeks, making it the biggest rally in 50 years! See the chart below.

Earlier today we asked if the 40-Year Bond Bull Market Is Over? And we highlighted how bonds and yields are facing an important test right now.

Will the record rise in bond yields continue? And will bond pric...



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Zero Hedge

Thousands Of Quakes Rock Iceland As Volcanic Eruption Could Be Brewing 

Courtesy of ZeroHedge View original post here.

Over the past week, there have been swarms of earthquakes on the Reyjanes Peninsula in Iceland. Most of the quakes are felt around Keilir volcano, just 20 miles south of the capital. Officials are warning similar quake activity has previously preceded volcanic eruptions.

According to the Icelandic Meteorological Office, thousands of quakes have hit the southwestern region of Reykjanes over the past week. The largest earthquake, a magnitude 5.6 on the Richter s...



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Politics

Why repressive Saudi Arabia remains a US ally

 

Why repressive Saudi Arabia remains a US ally

A demonstrator dressed as Saudi Arabian Crown Prince Mohammed bin Salman with blood on his hands protests outside the Saudi Embassy in Washington, D.C., on Oct. 8, 2018. Jim Watson/AFP via Getty Images

Courtesy of Jeffrey Fields, USC Dornsife College of Letters, Arts and Sciences

Saudi Crown Prince Mohammad bin Salman “approved an operation … to capture or kill Saudi journalist Jamal Khashoggi,” according to a...



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Phil's Favorites

Ensuring the minimum wage keeps up with economic growth would be the best way to help workers and preserve FDR's legacy

 

Ensuring the minimum wage keeps up with economic growth would be the best way to help workers and preserve FDR's legacy

It may seem like a lot, but it’s not the most important change in the bill. AP Photo/J. Scott Applewhite

Courtesy of Felix Koenig, Carnegie Mellon University

The US$1.9 trillion pandemic relief bill that the House ...



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ValueWalk

Top Five Click-Baits In Buffett's Annual Shareholder Letter, Number 4 Will Shock You!

By Jacob Wolinsky. Originally published at ValueWalk.

Investment legend Warren Buffett released his annual Berkshire Hathaway shareholder letter Saturday and with it a trove of wisdom for value investors. Surprisingly, the letter also showed off Buffett’s recently developed penchant for internet click-bait, as several of his asides uncharacteristically directed readers to follow internet fads previously ignored by the 90-year-old market magician. The Stonk Market has summarized those nonagenarian hot-takes below:

Q4...



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Biotech/COVID-19

COVID-19 revealed how sick the US health care delivery system really is

 

COVID-19 revealed how sick the US health care delivery system really is

Many U.S. hospitals and clinics are behind when it comes to sharing information. Teera Konakan/Moment via Getty Images

Courtesy of Elizabeth A. Regan, University of South Carolina

If you got the COVID-19 shot, you likely received a little paper card that shows you’ve been vaccinated. Make sure you keep that card in a safe place. There is no coordinated way to share information about who has been vaccinated and who has not.

...

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Mapping The Market

Which Governments Ordered Johnson & Johnson's Vaccine?

 

Which Governments Ordered Johnson & Johnson's Vaccine?

Courtesy of Niall McCarthy, Statista

On Wednesday, U.S. regulators announced that Johnson & Johnson's Covid-19 vaccine being developed by its subsidiary Janssen Pharmaceuticals in Belgium is effective at preventing moderate to severe cases of the disease. The jab has been deemed safe with 66 percent efficacy and the FDA is likely to approve it for use in the U.S. within days.

The Ad26.COV2.S vaccine can be stored for up to three months in a refrigerator and requires a single shot, ...



more from M.T.M.

Digital Currencies

Crypto - It Is Different This Time

 

Crypto – It Is Different This Time

Courtesy of Howard Lindzon

?I have been astonished as you know by the growth of crypto.

I remember back in 2017 when I noticed that Stocktwits message volume on Bitcoin ($BTC.X) surpassed that of $SPY. I knew Bitcoin was here to stay and Bitcoin went on to $19,000 before heading into its bear market.

Today Bitcoin is near $50,000.

Back in November of 2020, something new started to happen on Stocktwits with respect to crypto.

After the close on Friday until the open of the futures on Sunday, all Stocktwits trending tickers turned crypto. The weekend messages on Stocktwits have increased 400 percent.

That has continued each weekend...



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Chart School

The Fastest Money

Courtesy of Read the Ticker

The fast money happens near the end of the long trend.

Securities which attract a popular following by both the public and professionals investors tend to repeat the same sentiment over their bull phase. The chart below is the map of said sentiment.
 


 

Video on the subject.


 

Charts in the video



 



 



Changes in the world is the source of all market moves, to ...



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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

http://www.insidercow.com/ more from Insider

Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.