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What's up with Amazon?

by HN Banned
6 replies
What happened? Amazon share opened 10% lower today - from $227 to $205 while everything else is trading like usual. Is it a correction? Good time to buy?
#amazon
  • Profile picture of the author CyberAlien
    There is more information about this here: vator[dot]tv/news/2011-10-25-amazons-profit-drops-73-kindle-fire-to-blame

    Here's an excerpt:

    Update: Amazon stock was down 9.26% Wednesday morning to $206.12.


    Amazon posted its third quarter earnings results Tuesday afternoon and it's all smooth sailing for the e-commerce giant: sales were up 44% to $10.88 billion, the Kindle saw its largest order day ever on September 28, and profit tanked 73%. Wait, what?


    Yes. Profits dropped off 73% to $63 million from $231 million a year ago. The culprit: the Kindle Fire. To be more specific, Amazon's heavy investment in its new tablet, which retails for $199--a full $300 cheaper than the cheapest iPad--has leached the company dry (sort of).
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  • Profile picture of the author Andy Hart
    Amazon know exactly what they are doing, taking a hit on the front end and currently putting all the pieces together to kill it on the back end.

    Watch this space for Amazon

    Andy
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  • Profile picture of the author Fun to Write
    I wouldn't worry too much about it. The Kindle Fire is going to sell like hotcakes, which will make the company oodles of profit.
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    • Profile picture of the author Alex Kage
      Originally Posted by Fun to Write View Post

      I wouldn't worry too much about it. The Kindle Fire is going to sell like hotcakes, which will make the company oodles of profit.
      That's true but still the price of the shares is quite low.
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  • Profile picture of the author HN
    Banned
    Thanks for info. Such sharp declines tend to reverse soon. Just bought at $202.30 (1/3 size) and will be looking to buy at $180 (1/3) and $160 (1/3), but I think those levels won't be met.
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  • Profile picture of the author Gaz Cooper
    $10 Billion 3rd quarter revenue up from $7 Billion 2010

    might be time to buy

    They have been spending on expansion this might shed some light on it

    had to remove the link since the Washing post had a copyright notice just do a google on Washington Post Amazon and you will see the report


    kickin it on Amazon

    Gaz Cooper
    Amz Training Academy
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