Investors React to Amazon Q2 Spending in Pre-Market Trading

Posted in Uncategorized 
July 23rd, 2010

Amazon.com, Inc. (NASDAQ: AMZN) stocks were down this morning during pre-market trading as a result of the company’s second quarter earnings, which were released yesterday, falling far under investor expectations.  The company is down 11.37% at $106.42 at 8:35 AM EST, compared to $120.07 at market closing.  Amazon features a 52 week trading range of $77.51 to $151.09 and an average daily volume of 106,660.

The second quarter figures were the result of heavy investment by the company in projects such as Amazon Web Services and the Kindle.  Investors, therefore, received $0.45 per share on sales of $6.57 billion for the quarter, as opposed to the expected $0.57 per share on sales of $6.54 billion.  The company expects positive growth, however, for the third quarter, expecting sales between $6.9 billion and $7.6 billion.

-Michael B. Sauter

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