Disappointing Quarterly Reports from Apple, Amazon
Published: Thursday, October 25th 2012
On Thursday two big companies released less-than-satisfactory earnings reports after the closing bell. Both Amazon and Apple missed analysts’ expectations, but Amazon’s quarterly report was far more discouraging.
The world’s largest internet retailer may have made a mistake in its investment in LivingSocial. Amazon reported third quarter net loss of $274 million, part of which came from an impairment charge from the LivingSocial investment. However, even without this charge, Amazon still would have lost more than expected, according to the Associated Press.
Amazon’s revenue was $13.81 billion, short of the $13.91 billion expected. Amazon’s stock had closed down 2.44% and it continued to drop in early after-hours trading.
The report out of Apple was a little more mixed. The technology giant reported earnings were up 24%, but that number still fell short of investors’ expectations. Analysts expected earnings at $8.75 a share, but Apple only reported earnings of $8.67 a share.
Apple reported iPod sales were down 19% from the same time last year; however, iPad sales were up 26% and iMacs were up 1%.
Apple beat revenue expectations, reporting $36 billion for its fourth fiscal quarter compared to analyst expectations of $35.8 billion. Apple was down at the end of the day.
Plus, on the news that Apple was close to announcing an online radio service, Pandora’s stock plummeted 17% before trading was halted.
The information contained in this article should not be construed as investment advice or as a solicitation to buy or sell any stock.
Apple’s Online Radio Service to Challenge Pandora in 2013 – Bloomberg
Amazon Posts 3Q Results Below Expectations – Associated Press