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Amazon’s Earnings Expectations Were Too High: Analyst

Investors are up in arms about Amazon’s fourth quarter earnings miss, but the company has enough to celebrate, according to one analyst.
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Investors are up in arms about Amazon’s (AMZN) fourth quarter earnings miss, but the company has enough to celebrate, according to one analyst. ‘I think this is case of people expecting a little bit too much,’ said Joshua Mahony, a market analyst with IG in London. ‘They have been suffering from FX headwinds.’ Mahony said Amazon didn’t trump brick and mortar retailers during the holiday shopping season of 2015 to the extent that investors expected, but he said the company’s cash flow operations are improving. Amazon posted fourth quarter earnings of $1 a share, missing estimates of $1.56 a share. Revenue came in slightly below expectations. Though the company posted its biggest quarterly profit in history. Mahony also commented on the Bank of Japan’s unprecedented interest rate cut, moving rates into negative territory in an effort to spur lending. TheStreet’s Scott Gamm reports from Wall Street.

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