Amazon guided to a potential Q3 operating loss of up to $400 million. Somehow, analysts were up at a consensus operating income of $950 million despite the historical knowledge that the company expands retail growth at the costs of profits.

Maybe even worse, sales guidance for the quarter wasn't all that strong either, with mid-point guidance of only 24%. Clearly, the Prime Day event stole sales from the rest of the month versus generating a boost to revenues for the quarter.


The key investor takeaway is that Amazon is the FANG stock that doesn't belong with the others. The ugly Q3 guidance should dent the stock for a while, but the market will probably brush off the weakness heading into Q4. The stock really isn't appealing at any price, but the momentum play likely remains intact, though much better opportunities exist elsewhere.

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