The Ups and Downs of Being Amazon

Posted by: Rob Hof on October 23, 2007

Easy come, easy go: First, investors figured Amazon.com was going to beat third-quarter earnings estimates, so shares jumped 10% by the close of trading today. Then Amazon reported that profits quadrupled, on a 41% jump in sales, to $3.26 billion. Not good enough, apparently, and the stock was falling 10% in after-hours trading. That’s not so surprising, with Amazon’s forward price-to-earnings ratio at a nosebleed level of 59 and the shares doubled since April. What really matters is that Amazon’s bet on free shipping still seems to be working as it heads into the holiday home stretch.

Reader Comments

LordSaur

October 24, 2007 11:15 AM

Thats the biggest BULL !!!
With free shipping there still making a killing. Even with your shares falling screw the traders then, if that cant see what we all see.

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Bloomberg Businessweek writers Peter Burrows, Cliff Edwards, Olga Kharif, Aaron Ricadela, and Douglas MacMillan, dig behind the headlines to analyze what’s really happening throughout the world of technology. Tech Beat covers everything from tech bellwethers like Apple, Google, and Intel and emerging new leaders such as Facebook to new technologies, trends, and controversies.

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