Is Amazon’s Dominance In The Cloud Under Threat?
November 4, 2014
Grazed from GuruFocus. Author: Mihir Mehta.
It is true that Amazon (AMZN) is struggling with its bottom line and for a good period of time, it has just been assuring investors that the time would soon come when it revives its growth trajectory. In the third quarter as well, Amazon missed the Street forecast and the shares plunged 9 percent after the company provided lackluster guidance for its fourth quarter. The guidance was more disappointing because the fourth quarter is the holiday season in the U.S. and European markets as well and therefore, investors were hoping to get favorable assertions from the management.
Looking back
Over the past two years, Amazon has been running in different directions including experimenting with smartphones but most of these initiatives have not yielded expected results. In the third quarter, net loss widened to $437 million or 95 cents per share in the third quarter, from $41 million or 9 cents a year ago…
That came in larger than forecasts for a loss of 74 cents a share. Revenue also fell short of expectations. Net sales rose to $20.58 billion, but that lagged forecasts for $20.84 billion, according to Thomson Reuters I/B/E/S. So, now that I have given you an overview of the results, let me get to the main topic of discussion in this article…
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