Nasdaq AMZN Amazon

The S&P 500 and the Nasdaq posted losses on Thursday, as investors contended with solid economic data and a mixed bag of corporate earnings.

Grupo Televisa, Mexico's largest broadcaster, on Thursday said its third-quarter net profit jumped 47% from a year earlier, boosted by lower financial expenses.

NEW YORK (Reuters Breakingviews) - Amazon.com is caught in the crossfire. Following abysmal earnings from Facebook owner Meta Platforms on Wednesday, the $1 trillion online retailer took a big hit after unveiling its own third-quarter results. A

Our recent bifurcation among major market indices was apparent once again today, with the Dow +198 points on the day, +0.62%, and the tech-heavy Nasdaq -178 points, -1.63%. The S&P 500, which includes blue-chip stocks and plenty of tech, split the difference, -0.59%.

Over $200 billion in U.S. stock market value went up in smoke in extended trade on Thursday, after a weak forecast from Amazon added to a string of downbeat quarterly reports from Big Tech companies.

Amazon (AMZN) came out with quarterly earnings of $0.20 per share, missing the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.31 per share a year ago. These figures are adjusted for non-recurring items.

Amazon (NASDAQ:AMZN) is an unassailable e-commerce leviathan - or at least, that's what some financial traders may have assumed prior to the company's just-released third-quarter 2022 earnings report. As it turns out, however, grand expectations can lead to deep disappointment - and Amazon's investors just got a life lesson in exchange for a hefty chunk of shareholder value.

So, here's the rundown. Amazon's net revenue increased 15% year-over-year (YOY) to $127.1 billion, which is roughly in line with the analyst consensus estimate of $127.39 billion. Perhaps this would be adequate for any company besides Amazon, but with a company of this size and power, "good enough" just isn't good enough for Wall Street.

Turning to the bottom-line results, Amazon's net income of $2.9 billion, or $0.28 per diluted share, represents a decline compared to the $3.2 billion, or $0.31 per diluted share, reported in the year-earlier quarter. Amazon did beat the analyst consensus estimate of $2.16 billion, however.

Looking at the Bigger Picture

If you're thinking that Amazon's quarterly results weren't too bad, try extending the look-back period and consider how far Amazon has fallen. During the nine months that ended September 30, 2021, Amazon's net income slightly exceeded $19 billion. Fast-forward to the nine months that ended September 30, 2022, and the company reported a net loss of $3 billion.

What Amazon's investors needed now was confirmation that the company would defeat the inflation and supply-chain disruptions headwinds. They wanted to know that everything would be all right in the U.S. economy - because after all, if Amazon is flailing, then the American economy is probably failing.

Is Amazon Stock a Buy?

Analysts had a positive view going into today's earnings report, assigning Amazon a Strong Buy consensus rating based on 32 Buys, one Hold, and zero Sells assigned in the past three months. The average AMZN stock price target of $170.27 implies 53.24% upside potential. However, it'll be interesting to see if this changes going forward.

Bloated Assets Like AMZN Stock Can Fall Far

Also, investors should consider that so-called "growth stocks" are being dumped in favor of value-focused assets during the current economic downturn. When the going gets tough, the market's weighing machine gets turned on, and Amazon's valuation was probably too heavy for the company's own good.

Amazon's trailing 12-month P/E ratio was around 99 recently and in the triple digits not too long ago. That's after the stock market corrected, by the way. So, perhaps it was due time for a "reset" in AMZN stock.

That reset took place immediately after Amazon reported its less-than-stellar quarterly results. AMZN stock slumped 18% in post-market trading, and the company's P/E ratio will probably need to be updated (or I should say, "down-dated") soon. Whether that's a good or bad thing is up to you to decide. If you were sitting on the sidelines and stayed out of the trade, though, just be glad that you sidestepped the mighty share-price fall of a company that was once invulnerable, but is now as vulnerable as it's been in years.

Disclosure

Amazon.com Inc on Thursday forecast costs might eviscerate its profit for the current quarter, as early holiday marketing does little to boost sales growth and as labor and delivery expenses continue to swell.

Apple Inc on Thursday reported quarterly iPhone sales that fell short of Wall Street targets, adding to investor concerns about technology companies and sending shares down 1%, despite profit and revenue beats overall.

The S&P 500 and the Nasdaq posted losses on Thursday, as investors contended with solid economic data and a mixed bag of corporate earnings.

The NASDAQ 100 After Hours Indicator is down -166.52 to 11,025.11. The total After hours volume is currently 112,655,031 shares traded.The following are the most active stocks for the after hours session: Amazon.com, Inc. (AMZN) is -21.46 at $89.50, with 16,657,310 shares traded

(RTTNews) - Amazon.com Inc. (AMZN) reported a profit for third quarter that decreased from last year but beat the Street estimates.

Amazon.com Inc projected current-quarter sales below Wall Street estimates on Thursday as decades-high inflation and intense competition from rivals such as Walmart weigh on its retail business.

The S&P 500 and the Nasdaq posted losses on Thursday, as investors juggled solid economic data and a mixed spate of corporate earnings.

The BOJ announces its policy decision on Friday against a much calmer market backdrop than only a few days ago. Economists expect no change to the bank's ultra-loose stance and an upward revision to the inflation outlook.

Wall Street provided a mixed picture on Thursday, as investors juggled solid economic data and strong earnings from some blue chips with disappointing big tech results.

The Dow jumped on Thursday after a slew of upbeat earnings reports and data showing a rebound in economic growth eased some nerves about a recession, while the Nasdaq was pressured by a slump in Meta shares.

Thursday, October 27, 2022 

The blue-chip Dow rose on Thursday following a slew of upbeat earnings reports and data that showed U.S. economic growth rebounded in the third quarter, while the Nasdaq was pressured by a drop in Meta shares.

Wall Street closed lower following a choppy session on Wednesday. While the potentially dovish Fed continued to dominate investor participation in the market, disappointing earnings numbers coming in from the tech sector acted as a dampener. Two of the three major indexes