NEW YORK - Amazon the online retailer and the maker of the kindle fought through shaky after hours trading and pre-market trading and recorded a 8% gain in stock price on Wednesday. First quarter sales rose 38% to $9.86 Billion. Net income decreased 33% to $201 million compared with net income of $299 million in first quarter 2010.
The company also provided financial guidance for their next quarter; net sales are expected to grow between 35% and 47% however operating income is expected to be from $95 million and $245 million which is between a 65% decline and 9% decline compared to last year's quarter. The guidance includes $180 million in stock based compensation expense. Investors should be wondering why the range is so wide.
The company currently has a valuation of $88 billion making it nearly 1/4 the size of Apple despite 1/20th the profit and less growth. The company has also announced that earnings will decrease next year. Perhaps the valuation factors in that the modern day Amazon will be once again saved by the mythical Gargareans.
No comments:
Post a Comment