Amazon Earnings: Will Investors Be Disappointed?

As we approach Amazon earnings, should investors in the e-commerce powerhouse temper their expectations?

Jul 22, 2014 at 4:00PM

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%.

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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!

Andrew Tonner owns shares of Apple. The Motley Fool recommends, Apple, and Netflix. The Motley Fool owns shares of, Apple, Microsoft, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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