This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Amazon Gets a New Vote of Confidence

Stocks in this article: AMZN AAPL FB

In late October, Amazon reported a net loss of $274 million, or 60 cents a share, for the third quarter with sales totaling $13.81 billion. In the same period a year earlier, Amazon earned $63 million, or 14 cents a share, on sales of $10.88 billion. The results reflect a loss of $169 million, or 37 cents a share, related to asset impairment at its LivingSocial unit.

The average estimate of analysts polled by Thomson Reuters was for a loss of 8 cents a share in the September-ended period on revenue of $13.92 billion.

"Our approach is to work hard to charge less. Sell devices near breakeven and you can pack a lot of sophisticated hardware into a very low price point," said Jeff Bezos, Amazon's founder and CEO, in a statement released with earnings that highlighted sales of the Kindle Fire Tablet, Paperwhite e-book readers and overall digital ook sales. The company said its Kindle Fire HD 8.9 tablet priced at the $299 ships on November 20.

Bezos' approach to growing products at the expense of earnings was evident in Amazon's operating margins, which came in at a negative 0.2%, declining for a third straight quarter.

For the fourth quarter, Amazon forecast between an operating loss of $490 million and an operating profit of $310 million with sales projected between $20.25 billion and $22.75 billion. Also in October, Apple (AAPL) posted fourth-quarter results on that raised questions as to the direction of the tech giant's momentum headed into 2013.

The iPhone and iPad maker reported revenue of $36 billion, up from $28.3 billion in the prior year's quarter, and above analysts' forecasts of $35.8 billion.

Apple earned $8.67 a share on net income of $8.2 billion, up from earnings of $7.05 a share and net income of $6.6 billion in the same period last year. Analysts surveyed by Thomson Reuters, however, were looking for earnings of $8.75 a share.

The Cupertino, Calif.-based firm sold 26.9 million iPhones during the quarter, a 58% year-over-year hike. Apple's iPhone number also disproved rumors that the company has been struggling with supply chain issues. Wall Street had forecast between 25 million and 26 million iPhone sales.

Social networking giant Facebook (FB), beat on both the top and bottom lines when it reported its third-quarter earnings in late October.

--Written by Antoine Gara in New York.

>To submit a news tip, send an email to: tips@thestreet.com.

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs