

Amazon Net Income Plunges 96%, Shares Follow - uladzislau
http://techcrunch.com/2012/07/26/amazon-q2-2012/

======
tomfakes
Hmm, the AMZN after hours trading shows them to be UP after this news. This
headline seems to be verifiably false.

~~~
nodesocket
Net revenue is gross (total) revenue minus returns and any other negative
revenue. (Expenses have nothing to do with Net Revenue. Net Revenue is NOT the
same as profit.)

Just because net revenue is down, does not mean that the market didn't already
account for this change. The real thing to look at is EPS and expectations.
Additionally, after hours should not be used as any indicator since the volume
is basically insignificant.

------
hkmurakami
Am I wrong to think that considering their razor thin margins, such dramatic
reductions aren't really surprising?

They have over $10B in revenue but only about $100MM in profits. Fluctuations
in their costs would easily wipe out those profits.

~~~
Steko
Correct. This is something mildly interesting blown far out of proportion by
linkbait title, some fun with statistics and apparently after many years of
killing profits to focus on growth people still buy Amazon's stock because
they're hoping for blowout quarters. Better luck next time I guess.

------
cbr
"Of that 96 percent drop, Amazon estimated that $65 million of the net loss
was due to its acquisition and integration of Kiva."

