Amazon's Financials Compared to Apple

Here's an interesting contrast in how the stock market views company performance. Amazon's financial results for the last quarter were big on revenue - more than $21bn, up 22%, - but poor on profits, a comparitively measly $97m. The company also suggested that next quarter would probably be tighter, even warning of a potential loss for the period. Whilst sales are growing and the company is positioning it self well for the future, its not the sort of thing that would make you go gangbusters for Amazon stock. In overnight trading after the announcement Amazon jumped 11% as a result of this earnings call.

Apple's numbers were nothing short of amazing in comparison, $54bn in revenue and $13bn in profit, both record performance for the company. Apple also suggested that if it had been able to ship more kit sales could have measurably higher. Currently Apple's stock is down fropm $700 to around $450 - with some suggesting $325 as a likely resting place for the share price.

Its complete madness and demonstrates the disconnect between share price and performance.


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