Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Amazon Earnings: Will Investors Be Disappointed?

2014 hasn't been exactly kind to shares of worldwide e-tailer extraordinaire (NASDAQ: AMZN  ) . Amazon stock has plunged around 11% so far this year, while shares of its streaming opponent Netflix (NASDAQ: NFLX  ) have soared over 20%.

^IXIC Chart

^IXIC data by YCharts; % change may vary slightly.

Along with other tech titans like Apple and Microsoft, earnings will be released on July 24. And if some of the early signals are any indication, Amazon's earnings might prove frustrating for its investors. earnings: Big growth, no profits
To those familiar with, the subhead above probably doesn't come as much of a shock. In fact, it quickly crystalizes's longtime attitude about short-term profits versus reinvesting for the long-term.

Amazon's operations are more varied today than ever, with its moving into once seemingly disparate fields like cloud computing and streaming entertainment. However, as it goes toe-to-toe against powerful competitors in these spaces (like Netflix), Amazon still loves to aggressively offer low prices or reinvest profits into its various business lines in order to consolidate long-term market share. A key example of this is's ongoing spending on new original content to combat the huge success of Netflix's own original programming.

Trying to match the likes of Netflix in spending can have deleterious effects on quarterly performance, part of why analysts are forecasting a widening loss this quarter. However, it's also a tried-and-true tactic that has proven hugely successful over's storied rise. In the video below, tech and telecom specialist Andrew Tonner breaks down exactly what investors should watch for when earnings are announced later this week.

A hidden way to invest in tech's next boom
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3037432, ~/Articles/ArticleHandler.aspx, 8/30/2015 10:24:39 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Andrew Tonner

Andrew Tonner is a tech specialist for The Motley Fool. He is a graduate of The University of Arizona with a degree in Finance.

Today's Market

updated 1 day ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/28/2015 4:00 PM
AMZN $518.01 Down -0.36 -0.07% CAPS Rating: ***
NFLX $117.63 Down -0.03 -0.03%
Netflix CAPS Rating: ***