Amazon falls 10% in a single day
The online retailer missed on earnings estimates, and the stock takes a hit. Is this a temporary setback?
However, earnings per share isn't the only number investors need to look to here. In this video, host Mark Reeth talks with Motley Fool analyst Brendan Mathews about the key numbers he looks at in tracking Amazon's performance.
Brendan looks at the company's sales growth, which was up 20 percent year over year, and he also looks at Amazon's operating cash flow, which was up 10 percent.
Including these numbers in an analysis of the company paints a broader picture of Amazon's quarter than just looking at earnings per share, and Brendan sees it as having been a good quarter overall.
On the business side of things, Brendan sees a number of exciting initiatives that Amazon is investing in today. He sees huge growth in Amazon Prime membership numbers and upgrades to the company's Kindle tablet and its Amazon Prime streaming video content library, and says that as long as Jeff Bezos is still at the helm, the company has an enormous amount of growth ahead. He doesn't see a single quarter's earnings miss as a cause for concern, and is definitely a buyer on Friday's pullback.
The Motley Fool's 12 top stocks for 2013 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2013: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2013! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now.
It is very difficult to turn your back on "possible" more appreciation...?
It is even more difficult to try and time the Markets...
Greed can be and always will be a detriment..
I think Buffet related to the "fear and greed" objectives like others have.
Possibly stop losses or trailing stops could help alleviate some of the problems..
The question remains when do you apply them in trending bull markets, that have hard corrections.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Why are stronger numbers considered bad news? Investors are worried about the impact on inflation and interest rates.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.