Tech Crunch: Amazon Fumbles Earnings Amid High Expectations

Chip Somodevilla/Getty Images
Chip Somodevilla/Getty Images

Despite investor confidence and soaring stock prices, Amazon’s fourth-quarter earnings in 2016 fell below expectations.

From Tech Crunch:

Mixed faces in Seattle today as Amazon delivered its Q4 2016 earnings. The e-commerce company reported lower than expected revenue of $43.74 with better than expected earnings per share of $1.54. Expectations had been high in the run up to the release. Wall Street consensus was that Amazon would deliver revenue of $44.68 billion with $1.35 earnings per share.

In the immediate moments after the news dropped, Amazon stock shot down in after-hours trading. Going into Q1 2017, Amazon is forecasting revenue to be between $33.25 billion and $35.75 billion. Operating income is expected to dip from 2016.

Last quarter was rough for investors. Wall Street was largely caught off guard when the company reported EPS 26 cents below 78 cent expectations. In reaction the stock slugged along with little gains to close out the year. But the narrative has been changing in recent weeks.

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