The stock is now down $40.15 (11.20%) at $318.46.
From Barron's Tech Trader Daily:
Shares of Amazon.com (AMZN) are down $41. 31, or almost 12%, at $317.30, in early trading, adding to last night’s losses, after the company missed Q2 profit expectations with a much-wider-than-expected net loss per share, and said losses will be even deeper this quarter.
Among the surprises of the quarter, beyond just the lower profit, were announced price cuts in Amazon’s cloud computing service, Amazon Web Services, or AWS. Continued price chopping in AWS is expected to be one of the main causes of the deeper projected losses going forward.
The stock has gotten three downgrades this morning, that I can see, from Raymond James‘s Aaron Kessler, CRT Capital‘s Neil Doshi, and B. Riley & Co.‘s Scott Tilghman.
Kessler, cutting his rating oto Market Perform from Outperform, and stripping away his $391 price target, writes that “While we maintain a positive long-term view on Amazon, we believe shares are likely to remain range-bound near-term given continued high levels of investment combined with slowing unit growth (especially international growth).”
Kessler raised his 2014 revenue forecast to $91.36 billion from $91.25 billion, but cut his profit estimate to a loss of 16 cents a share from a profit of 79 cents a share.
There are also plenty of price target cuts.
Cowen & Co.‘s John Blackledge, reiterating an Outperform rating, cuts his price target to $390 from $410, writing that “We remain constructive, but were disappointed by the lower-than-expected AWS growth.”
Still, Blackledge sees things to like...MORE
