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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