(Reuters) - Amazon.com Inc (AMZN.O) offered a disappointing sales outlook and warned it may lose money in the first quarter, as it continues to splash out on expansion and new ventures. Its shares plummeted.
JASON HELFSTEIN, ANALYST, OPPENHEIMER & CO
”The miss was mostly U.S. media, and a bit from international general merchandise.
”They need to do something to really ramp up their U.S. media business. That really missed everyone’s expectations.
“Internationally, it’s hard to say. It’s widely known that Germany slowed down. I think Google cited that as incremental weakness.”
”Current quarter is ok. Guidance is a little light. I think that’s where investors are having concerns.
“It’s more or less due to the guidance for the first quarter. Amazon is not a cheap stock, so any type of disappointment ., we typically see a pretty meaningful reaction by the market.”
“Sales were light. Margins beat, but outlook was disappointing on both top line and bottom line.”
Reporting By Lisa Baertlein in Los Angeles and Martinne Geller in New York