Amazon Crushed After Giving INSANE Guidance

What sort of company gives operating income guidance–ranging $100-700 million v an estimate of $650 million?

Amazon sees Q1 operating income of $100-700 mln vs ~$650 mln estimate; revs $26.5 -29.0 bln vs +22% y/y to $27.7 bln consensus

I’ll tell you the sort of company. It’s the type of company THAT DOESN’T GIVE A SHIT ABOUT MAKING MONEY. Jeff Bezos is an evil villain, who is wholly consumed with world domination. He wakes up thinking of ways to destroy mom and pop stores, as well as large box retailers. He is winning–because Wall Street has provided him with time. Sooner or later, Wall Street will run out of patience and throw his stock into the streets.

The company missed by 0.58 and was light on revenues too.

Reports Q4 (Dec) earnings of $1.00 per share, $0.58 worse than the Capital IQ Consensus of $1.58; revenues rose 21.9% year/year to $35.75 bln vs the $35.98 bln Capital IQ Consensus and $33.5-36.75 bln; operating income $1.1 bln vs ~$1250 mln estimates and $80-1280 mln guidance.

North America retail operating income +37% to $1 bln, sales +24% to $21.5 bln.

AWS operating income +186% to $687 mln; rev +69% to $2.4 bln.

Co issues in-line guidance for Q1, sees Q1 revs of $26.5-29.0 bln vs. $27.72 bln Capital IQ Consensus; operating income $100-700 mln vs ~$650 mln estimates.

Amazon is off by $82 or 12% in the after hours. It’s only down a net $30 from yesterday’s close, so the fun might just be getting started here.