This Day On The Street
Continue to site right-arrow
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 Isn't a Startup. Should It Stop Acting Like One?: StockTwits

Stocks in this article: AMZN NFLX AAPL FB TWX

NEW YORK (TheStreet) -- Show me the profits! That was the message Amazon  (AMZN) investors on StockTwits had for CEO Jeff Bezos after the e-commerce giant announced first-quarter sales that topped Wall Street estimates, but also reported declining operating income, fueling doubts about Amazon's valuation.

$AMZN mrk cap 150 bln it means they must earn around 10 bln in future, could they do it? 10 with margin 4% they need to get 250 bln sales -- kh (@khmusabaev) Apr. 24 at 05:38 PM

Amazon net sales grew 23% year-over-year to $19.74 billion in the first quarter. That beat analysts' calls for $19.42 billion, according to the Analyst Ratings Network. Earnings per share increased 5 cents from the same period last year to 23 cents, meeting analyst expectations. But, operating income declined 19% in the quarter from the same period a year ago to $146 million.

In the company's guidance, management told investors to expect worse operating income in the near future. Management guided for an operating income loss of between $455 million and $55 million. Net sales should fall between $18.1 billion and $19.8 billion, according to the press release. The mid-point of that number is just shy of the consensus estimate of $19.03 billion, according to stats on Yahoo! Finance.

Amazon's stock fell sharply from an initial pop in after-hours trading. Shares dropped more than 5% in the premarket. Amazon trades at more than 80 times expected 2015 earnings. Sentiment on the stock is divided, with 53% of the crowd calling for gains and the other 47% anticipating declines, according to StockTwits analytics.

Though Amazon reported strong sales growth, investors on StockTwits expressed fatigue with the 20-year-old company's startup mentality. They said Amazon should stop pouring money into new entertainment businesses that compete in Netflix's  (NFLX) and Apple's  (AAPL) backyards. Instead, the company should focus on expanding margins and becoming more efficient with its bread-and-butter e-commerce business.

$AMZN costs keep rising and margins keep shrinking. -- David Trainer (@dtrainer_NewConstructs) Apr. 24 at 05:08 PM

See limited upside on a DCF eval. $AMZN needs >15% rev growth for 10+years, plus margins to increase to 5% from <0.5%. to support $350. -- Chris Marc (@chris00nj) Apr. 24 at 08:38 PM

1 of 2

Select the service that is right for you!

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!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • 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