Parsing Amazon’s Q2 2017 Results (Pssst! Don’t Bother Calculating the P/E Ratio)

Loss Forecast for Q3

Imagine a company that just reported quarterly sales of $38,000, of which a scant $197 was actual profit.

Imagine further that the company went on to forecast that, while sales would continue to grow, its already skimpy quarterly profit would actually flip to a loss the next (current) quarter.

You wouldn’t exactly expect shareholders to jump up and down.

Ahhh, but now add six zeroes** to those results, and put the name “Amazon” on the earnings report, and suddenly investors aren’t so disappointed:  after a brief, initial sell-off, company shares dipped less than 3% today.

**That comes to quarterly sales of $38 billion and profit of $197 million, respectively.



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