In the following video, Brenton talks about two stocks that went in opposite directions after reporting earnings last week: Amazon.com and Netflix. The latter saw its stock price collapse after reporting earnings that, while beating EPS estimates handily, didn't offer the kind of subscriber growth forecast investors were looking for. Amazon shares, on the other hand, surged despite lower-than-expected revenue as well as a tempered outlook for the next quarter.
Clearly, the market believes in the Amazon story right now and has come to expect less than stellar profitability in the near term. If you're interested in how Amazon, and another retailer, are changing the retail landscape, we invite you to take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they’re planning to ride the waves of retail's changing tide. You can access it by clicking here.
Brenton Flynn owns shares of Amazon.com and Netflix. The Motley Fool owns shares of Amazon.com and Netflix. Motley Fool newsletter services recommend Amazon.com 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.