Amazon and Pandora Disappoint: Tech Winners & Losers

NEW YORK (TheStreet) –– (AMZN) shares tanked 11.6% to $317.00 after the company’s second-quarter earnings showed much higher losses than expected.

In its second quarter, the Seattle-based company lost 27 cents per share on revenues of $19.34 billion. Analysts polled by Thomson Reuters expected $19.34 billion in revenues, but with only a loss of 15 cents per share. This net loss was well ahead of the loss of $7 million in the second quarter 2013. Last quarter, Amazon earned 23 cents a share on $19.74 billion in revenue.

Net sales increased 23% year-over-year. The operating loss was $15 million this quarter, compared with $146 million in the first quarter and an operating income of $79 million a year ago. The company also issued third-quarter revenue guidance between $19.7 billion and $21.5 billion, in line with the consensus estimate of $20.83 billion. The operating loss guidance for next quarter is between $810 million and $410 million, a huge increase from the loss forecast by analysts of $25 million.

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Amazon Plunges: What Wall Street's Saying

Despite these disappointing results, many analysts remain bullish on Amazon. Bank of America Merrill Lynch analyst Justin Pope reiterated his “buy” rating but lowered the price target to $400 from $420. Deutsche Bank analyst Ross Sandler reiterated his “buy” rating, but lowered the price target to $375 from $400. JPMorgan analyst Doug Anmuth reiterated his “neutral” rating and lowered the price target to $340 from $350. William Blair maintained its “outperform” rating. Pacific Crest analyst Chad Bartley maintained his “outperform” rating and $460 price target.

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