Dual Flop in Seattle Earnings Reactions (MSFT, AMZN)

Posted in pre-market 
April 23rd, 2010

Microsoft Corp. (NASDAQ: MSFT) and Amazon.com, Inc. (NASDAQ: AMZN) are both experiencing a “Sell The News” trading this morning after earnings.

Microsoft beat earnings at $0.45 EPS on $14.5 billion in sales versus $0.42 on $14.48 billion expected from Thomson Reuters.  The closely watched online operations revenue rose to $566 million from $507 million last year, but the loss in the division moved from $411 million last year to loss of $713 million.

Amazon.com, Inc. (NASDAQ: AMZN) also beat earnings expectations at $0.66 EPS on $7.14 billion in revenue versus Thomson Reuters estimates of $0.60 EPS and $6.86 billion. Amazon.com sees revenue in the current quarter of $6.1 to $6.7 billion versus $6.4 billion expected. Amazon is still a very high multiple on forward earnings.  Shares hit an all-time high yesterday.

  • UPDATE 9:28 AM EST: MSFT is down only 0.8% at $31.13 on 5.8 million shares and AMZN is is down 3.8% at $144.60 on 1.1 million shares as of 9:28 AM EST.

Microsoft is trading down by 1.7% at $30.86 on over 2 million shares as of 8:18 AM EST.

Amazon.com is trading down 3.9% at $144.25 on about 220,000 shares as of 8:18 AM EST.  Shares hit an all-time high of $151.09 yesterday.


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