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Published on 1 February 2019
It's been a long week, so we kept it short and sweet. Why Amazon Is Suffering Despite beating expectations Amazon opened down 5% Friday, Feb. 1. The company issued weaker-than-expected Q1 guidance and analysts were worried about the uncertainty in India. Real Money Stock of the Day Amazon shares were falling premarket and remained down around 5% when the market opened after reporting earnings after the bell on January 31. TheStreet's Martin Baccardax reported that Amazon said earnings for the three months ending in December surged to $6.04 a share, well ahead of the consensus forecast of $5.68, as sales rose 20% to a record $72.4 billion. However, the group also guided for first quarter sales in the region of $56 billion to $60 billion, missing the Refinitv estimate of $60.77 billion, citing regulatory uncertainty in India, a key growth market, raising questions over its uneven international strategy. "There is much uncertainty as to what the impact of the government rule change is going to have on the e-commerce sector there," Amazon CFO Brian Olsavsky told investors on a conference call late Thursday, in reference to new rules that restrict foreign-owed companies from selling good through vendors in which they have an ownership stake. "We remain committed to complying with all laws and regulations, we will, but we're evaluating the situation."
It's been a long week, so we kept it short and sweet. Why Amazon Is Suffering Despite beating expectations Amazon opened down 5% Friday, Feb. 1. The company issued weaker-than-expected Q1 guidance and analysts were worried about the uncertainty in India. Real Money Stock of the Day Amazon shares were falling premarket and remained down around 5% when the market opened after reporting earnings after the bell on January 31. TheStreet's Martin Baccardax reported that Amazon said earnings for the three months ending in December surged to $6.04 a share, well ahead of the consensus forecast of $5.68, as sales rose 20% to a record $72.4 billion. However, the group also guided for first quarter sales in the region of $56 billion to $60 billion, missing the Refinitv estimate of $60.77 billion, citing regulatory uncertainty in India, a key growth market, raising questions over its uneven international strategy. "There is much uncertainty as to what the impact of the government rule change is going to have on the e-commerce sector there," Amazon CFO Brian Olsavsky told investors on a conference call late Thursday, in reference to new rules that restrict foreign-owed companies from selling good through vendors in which they have an ownership stake. "We remain committed to complying with all laws and regulations, we will, but we're evaluating the situation."
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