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



Amazon Blacks Out

Get out the diapers. Online shopping has grown like a weed in recent years. But on Monday, when its site went missing for several hours, Motley Fool Stock Advisor recommendation (Nasdaq: AMZN  ) gave us a startling reminder that the key players, like bladder-busting toddlers, are still prone to the occasional accident.

In a report at ZDNet, Web performance monitor Keynote Systems said the e-commerce giant started experiencing problems yesterday morning at 8 a.m. Pacific time and that outages continued intermittently through 2:30 p.m. Pacific. It wasn't clear whether the site was the target of a deliberate attack or the victim of an internal glitch. Either way, the timing stinks.

Amazon blacked out after online retailers had a banner Black Friday. The day after Thanksgiving -- known for its ability to put retailers "in the black" -- was a huge success as online shoppers booked more than $250 million in sales, up 41% from last year, according to researcher comScore Media Metrix. Shoppers even got out on turkey day, stuffing virtual shopping carts with $133 million in goods. That's double last year's total.

The good news is that last month's shopping could account for only 17% of expected online retail sales this season, according to a research report compiled by Goldman Sachs (NYSE: GS  ) , Nielsen/NetRatings, and pollster Harris Interactive (Nasdaq: HPOL  ) . No doubt Amazon would get much of the remaining business, so long as its virtual doors remain open. It's worth noting that the company is expecting a windfall: Fourth-quarter guidance calls for revenue of $2.29 billion to $2.54 billion, or growth of as much as 31% over last year.

Will it now be harder for Amazon to make its numbers? Probably. But investors shouldn't overreact the way Wall Streeters did when Wal-Mart's (NYSE: WMT  ) Thanksgiving hiccup came to light. If anything, Foolish stock pickers ought to be looking to profit if smaller online retailers such as Motley Fool Rule Breakers recommendation (Nasdaq: OSTK  ) or Motley Fool Hidden Gems pick RedEnvelope (Nasdaq: REDE  ) see their shares spark and sputter on Amazon's blackout.

For related Foolishness:

Has all this gift-giving talk imbued you with the holiday spirit? If so, check out our annualFoolanthropy charity driveand support a worthy cause this season.

Fool contributor Tim Beyers has never blacked out, though he did live through New York's famous 1977 blackout. Tim doesn't own stock in any of the companies mentioned. To get a peek at his weird habits and portfolio, check out his Fool profile, which is here.

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

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.

Compare Brokers

Fool Disclosure

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: 504109, ~/Articles/ArticleHandler.aspx, 10/25/2016 12:13:43 PM

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...

Today's Market

updated Moments ago Sponsored by:
DOW 18,179.78 -43.25 -0.24%
S&P 500 2,144.92 -6.41 -0.30%
NASD 5,288.28 -21.54 -0.41%

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

10/25/2016 11:57 AM
AMZN $840.10 Up +2.01 +0.24% CAPS Rating: ****
EBAY $29.08 Down -0.14 -0.48%
eBay CAPS Rating: ****
GS $175.45 Up +0.33 +0.19%
Goldman Sachs CAPS Rating: ***
HPOL.DL $0.00 Down +0.00 +0.00%
OSTK $14.58 Up +0.03 +0.17% CAPS Rating: *
REDE.DL $0.00 Down +0.00%
RedEnvelope, Inc. CAPS Rating: No stars
WMT $69.58 Up +0.39 +0.56%
Wal-Mart Stores CAPS Rating: ***