Amazon Earnings Miss Estimates; Outlook Is Cautious

Amazon.com missed analyst expectations for the second quarter and its outlook was cautious.

Following the earnings report, Amazon [AMZN 220.01 2.96 (+1.36%) ] shares fell nearly three percent in trading after the closing bell. (Click here to get the latest quote for Amazon.)

"The real story here is around guidance — it was a little bit light from what people were expecting, and the bottom line much lower than what people would have expected," Kerry Rice, an analyst at Needham & Co., said.

"A common theme for Amazon is they're going to spend to build the infrastructure and capacity to deliver the products and services to the consumer that they feel the consumer wants," Rice said. "As long as they grow in the high 20s to 30-percent range year over year, they will continue to spend like that."

Read Full Article from CNBC.com

- Posted: 2012-07-26 17:08:35

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