Amazon Third Quarter Earnings Bombs

Amazon (AMZN) this afternoon reported its third quarter earnings which spooked Wall Street, with its 95 cent per share loss instead of Wall Streets analyis expected a loss for the third quarter of 74 cent. The firms revenues came in at $20 billion, a 20% increase from the previous year and also saw operating cash flow rise 15% to $5.71 billion compared to $4.98 billion in the same time last year. Amazon free cash flow rose to $1.08 billion compared to $388 million last year. The firm has operating loss of $544 million in the third quarter compared to last year of $25 million. Net loss was $437 million compared to $44 million last year. During the third quarter the firm poured $21 billion into operations that up 23 percent from last year. Amazon funneled $21 billion into a wide range of initiatives, such as 13 new fulfillment centers, Amazon Fresh, category expansion mainly into apparel, $2.2 billion expansion into India, and new digital freebies like Prime Music and Prime Video. At the end of September the firm had shares outstanding of 481 million compared to last September of 475 million.
New Products In the Third Quarter
During the third quarter Amazon revealed the new Kindle Voyage and the Fire HD Tablet, the kid edition Fire HD editions. The firm also revealed its new kindle HD 8.9 inch and the Amazon Fire TV became that became highly successful best seller in the United States, the U.K., and Germany. The company also revealed a new round of games from Amazon Game Studies and the Twitch acquistion for $1.1 billion. Amazon in the third quarter continued to expand Amazon Fresh service.
What Amazon Expects From its Fourth Quarter
The firm expects to net sales of between $27 billion and $30 billion which would be a 7% to 18% growth rate year over year. Amazon expects its operating loss to between $570 million and a gain of $430 million.
Amazon Stock Tank A Buying Opportunity Or Not

Amazon is the largest American online retailer in the world, that has been dominating online retail for over a decade now. The is the reason so many book stores around the country have gone bankrupt or out of busines. Amazon sells for 1.89x its sales where its should sale for 2.5x its sales which would value the firm at $440 per share far above its current share price. At 2.5x its sales is still below Ebay average price to sales. Amazon doesn't have any earnings and currently reporting net loss after net loss, quarter after quarter. The firm is losing money because its unprofitable or unable to make money, its clearly spending all the potential profits that are becoming in every year to be reinvested in the the firms current operation or to expand into new businesses. Clearly Amazon is giving up short term profits for long-term gains in market share which will expand its potential profits in the long-term. The more the firm spend its potential profits for the future market share an growth the more the share price will suffer quotional losses which will give long-term growth investor the opportunities to acquire shares in Amazon at loser price in the near term. Clearly Amazon is a classic Philip Fisher growth stock, not a Benjamin Graham kind of stock to by. Amazon is the kind of stocks growth investors should buy not value investors.