On October 22, 2008 Amazon.com announced its third fiscal quarter earnings results. Amazon's sales increased 31% for the quarter, compared to the same period in 2008, but its forecast for the end of the year sent shares downwards. Amazon reduced its outlook for the full fiscal year results, indicating to investors that the internet retail giant is not immune to the weakened economy. Shares fell nearly 14% following the earnings release.
On July 22, 2008 Amazon and TiVo announced a joint service that will allow TiVo subscribers to purchase products from Amazon.com, using their remote controls. Products related to popular television series and films will be the focus of the new service, allowing TiVo subscribers to browse and buy items related to their favorite programs.
Amazon.com's website outage caused its stock price to drop nearly 4% as of 3PM EDT. This is especially bad news for the company as it makes a big push into utility computing with its Amazon Web Services (AWS) offering. These types of services have the potential to drive much higher profits than the razor-thin margins from commodities such as books and DVDs. AWS and related products piggy back off of existing infrastructure for the world's biggest e-commerce company, making it a logical business extension for the company.
Shares increased over 7% on May 19 after Goldman Sachs upgraded Amazon to a "conviction buy" with a $98 price target
On April 23, 2008 Amazon announced its first quarter earnings results. The company reported a 30% increase in net income to $143 million, compared to $111 million during the same period of 2007.
Amazon's earnings call on 10/23 showed the company is successfully growing its top line figures, but lower than expected forecasts on margins and bottom line income batter the stock's historically high valuation.
Prior to the Q3 '07 earnings call (after market close on 10/23), shares surpass $100 for the first time in 7 years, under high expectations for rosy Q3 results.
The company reported that second quarter net income increased to $78MM (compared to $22MM last year in the same quarter). Revenue increased 35% to $2.89 billion. Bezos, the CEO, attributed part of its success to its unlimited shipping program, Amazon Prime.
Amazon saw its stock price rise to a 7-year high as an analyst from Citigroup increased his price target by over 30% to $67. The analyst cited Amazon's new DRM-free music download service and an increased European presence.
First quarter 2007 earnings results surprise the Street with unexpected margin improvement. Likely short squeeze leads to dramatic increase in share price literally overnight.
Edit Metric
