Why Amazon Stock Crushed Earnings, Then Crashed 5.5%
This is not how earnings beats are supposed to work: On Thursday, Amazon (NASDAQ: AMZN) reported a staggering profit of $12.37 per share (Wall Street had predicted only $7.41) on sales of $96.1 billion that likewise beat street estimates of $92.7 billion. The e-commerce giant then followed up its massive earnings beat with a prediction that in the heavy-spending holiday fourth quarter, it would grow its sales past $112 billion and perhaps as high as $121 billion.
Wall Street thinks Amazon will do only $112.3 billion in sales in the fourth quarter.
But despite all this, investors are selling off Amazon stock, which was down 5.5% as of 1:20 p.m. EDT on Friday.
Source Fool.com
