Amazon’s Jeff Bezos briefly became the globe’s richest man when the company’s shares moved further over half a trillion value on Wall Street, moving past Microsoft’s Bill Gates.But Amazon shares eased in late trading and he was back to second spot, according to Forbes magazine.
Then Amazon reported its second quarter results after trading closed, which were weaker than expected and Jeff Bezos was ‘poorer’ again.
Amazon’s results came too late to have an impact on trading which saw the Dow close rise 0.4% at a new record finish, but the S&P 500 (down 0.1%) and the Nasdaq (down 0.6%) dropped.
Facebook meanwhile ended Thursday trading with a market value of $US493 billion – just over $US6 billion behind Amazon’s $US499 billion, which will fall further in trading on Friday, US time, if the near 2% fall in after hours trading is any guide.
Amazon reported much lower earnings than expected this morning, Sydney time, sending the shares lower and ending the latest bull run for the time being.
Amazon reported net income of $US197 million on sales of $US38 billion, a profit drop of 77% from the same quarter a year ago.
Analysts had forecast Amazon to report earnings almost double what was in the June quarter report.
The company’s spending cut into profit, as fulfillment costs — the amount Amazon spends to filling customers’ orders jumped 33% from a year ago and spending on technology and content increased by about 43%.
Revenues at Amazon Web Services — the cloud computing division that accounts for the bulk of the group’s profits — rose 42% to $US4.1 billion. That was down from the 43% growth in the previous quarter.
Investors will forget the weak performance and focus on an upbeat outlook from the company
The Seattle-based company said it expects net sales of between $US39.25 billion to $US41.75 billion in the third quarter, the higher end of its outlook topping Wall Street forecasts for $US38.97 billion.
The guidance excludes the impact of the company’s $13.7 billion Whole Foods acquisition where opposition is growing to the deal.
Apple reports early Wednesday morning Sydney time, Tesla reports a day later.
