Amazon Share Price Drops 11% Following Quarterly Results Announcement

Amazon (NASDAQ:AMZN) announced its quarterly earnings yesterday. The company has had an overall growth in the quarter ending June. Revenues rose 41% year-over-year to reach $6.6 billion. Profits were up too – by 45% – to reach $207 million.

Despite the growth, the markets have shown a disappointment as the results were below expectations. The market closed at 120.07 yesterday and prior to the opening hours, the stock is already down by close to 11% to trade at 106.89. Analysts had earlier estimated the quarterly revenues to reach $7.16 billion.

However, the results have shown some interesting trends moving forward. Amazon announced that their platform has now been selling more Kindle books than paperbacks. Apparently, over 180 Kindle books are being sold for every 100 hardbacks. This number is expected to be much higher if free Kindle books are also to be counted, though that wouldn’t matter since they do not technically contribute to the company’s earnings.

Leave a Reply

Your email address will not be published. Required fields are marked *