Amazon missed expectations with its Q3 earnings report and projected a loss for the current quarter. The double-down on its Kindle Fire is at the heart of the matter. With razor-thin profits projected for the tablet, Amazon is betting it all on content sales. The market is not so sure. Amazon stock fell 20 percent after its earnings report was released. The e-commerce giant reported earnings of $63 million, or 14 cents per share. Analysts had been hoping for 24 cents per share. Revenue climbed 44 percent to $10.9 billion, indicating the slump had to do with spending, not sales.
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Fire Scorches Amazon Stock
Posted by: Rob Spiegel October 26, 2011 11:11 AMAmazon missed expectations with its Q3 earnings report and projected a loss for the current quarter. The double-down on its Kindle Fire is at the heart of the matter. With razor-thin profits projected for the tablet, Amazon is betting it all on content sales. The market is not so sure. Amazon stock fell 20 percent after its earnings report was released. The e-commerce giant reported earnings of $63 million, or 14 cents per share. Analysts had been hoping for 24 cents per share. Revenue climbed 44 percent to $10.9 billion, indicating the slump had to do with spending, not sales.