What happened to Amazon?

Third quarter net income was way down. They’re spending a lot of money on expanding future sales but it’s hurting the bottom line now.

Amazon Inc shocked investors with a far weaker-than-expected outlook for the crucial holiday season quarter as it spent heavily on its new Kindle Fire tablet computer
Edit:If last x-mas sales are any indicator, this year Amazon will again pick up for next quarter. I wouldn’t be too concerned.

Must be because my Amazon addiction is in remission. lol

Interesting! Hmmm.

Yup, it’s the Kindle Fire.

You have to remember with stock that the price is only public preception and not how a company is actually doing. Some people look at changes as a bad thing yet it could be the right direction for the company and because they aren’t paying dividends a particular quarter it may be viewed in a negative manor when ultimately the changes the caused this is actually a huge money maker and in the end the stock price goes up.

I never look at just the stock price to see how the company is doing, you need to look at the company’s perspectus. That is where you find the company’s financials and how they are actually doing.

I am so happy about this. I sold my Amazon stock the day before it started dropping! Bazinga!

@KateTheGreat Now if you want and think it will come back up buy it back and get more shares, so when it goes back up you can make $$$. When the credit crisis first began I bought Bank of America stock for just under $5 and sold it when it came back up at $13. I made a really nice little profit on my $5000.

Amazon almost qualifies as what we call “a world beater.” That’s a company that stands as either the best in the world, or very close to being the best. If the stock is down, buy it. It’s bound to come back.

Amazon’s PE is: 104.53

Wayyyyy overvalued!

@KateTheGreat If you buy it back watch for the wash sale rules.

People who are selling the stock now will be kicking themselves in the face in a short while. The decreased profit was the result of heavy investment in the new Kindles. The new Kindle/Kindle touch are now better and are at REALLY attractive price points. And the Fire will be the first real competitor to the iPad for the non-affluent consumer. With the Fires tie in to Amazon’s store ecosystem they stand to make a crapton of money.

@creative1 Yeah, I’m definitely buying some back before the holidays start up. Also, with the new Kindle deals, I can earn tons.

@KateTheGreat Excellant to hear that, I love to hear of people making good investment these days.

@sinscriven I totally agree with you there, the people who are selling short will definately be kicking themselves.