Amazon , purveyor of fine mini - tablets andconcrete mixand other sundries , announced todayhow much money it made last twelvemonth and where and why . The only problem ? Like most lucre news report , it ’s whole undecipherable . countenance ’s adjudicate to check down what come about and why it matters .
Here are some relevant quotes , and what they essentially imply :
Net gross sales increase 35 % to $ 17.43 billion in the quaternary one-quarter , compared with $ 12.95 billion in fourth poop 2010 . Excluding the $ 101 million favorable impingement from year - over - year alteration in alien interchange rates throughout the quarter , net sales would have grown 34 % compare with fourth quarter 2010 .
Wow , $ 17.3 billion . That ’s a pile of money , good ? Wrong ! Of course it ’s wrong , why else would I set you up like that ? Amazon shoot in $ 17.43 billion of your money in the last three months , but In the world of net profit reports , all that weigh is how you perform compared to how investment analyst as if by magic predicted you would execute , since those prediction have been built into your stock monetary value .
In this guinea pig , the median psychoanalyst revenue appraisal was around $ 18 billion . So as far as Jim Bob Analyst is concerned , Amazon underachieve by nearly $ 600 million — even more if you take into history the hundred million bucks they lucked into because of currency fluctuations .
Net income fall 58 % to $ 177 million in the 4th quarter , or $ 0.38 per dilute portion , compare with net income of $ 416 million , or $ 0.91 per diluted share , in fourth quarter 2010 .
So of that $ 17.43 billion that went into Amazon ’s coffer , they really get to keep $ 177 million of it . That ’s 58 % less $ $ $ than they got to keep a year ago , which is big , right ? Well , sort of . Analysts had been expect even worse net income than that . Because it ’s an expectations game , this is in reality a minor , sad triumph in an otherwise disappointing quarter .
And yes , I just said that $ 17.6 billion taxation and $ 177 million profit was disappointing . It is ! The stock ’s down 8 % already .
“ We are thankful to the meg of customers who purchase the Kindle Fire and Kindle e - lector devices this holiday season , making Kindle our bestselling product across both the U.S. and Europe , ” said Jeff Bezos , founder and CEO of Amazon.com . “ Our millions of third - party Peter Sellers had a marvellous vacation season with 65 % unit of measurement growth and now correspond 36 % of entire units sold . ”
Translation : darling media , please talk about Kindles rather of all that money we did n’t make .
During the nine - calendar week vacation menstruation end December 31 , 2011 , Kindle unit sales , include both the Kindle Fire and e - lector gadget , increased 177 % over the same period last yr .
We are still not going to recite you how many of these damn things we sold , partly because the mystery is cunning and partly because it ’s definitely not in the same approximate range as the iPad so why suffer in the comparison ?
Kindle Fire is the # 1 bestselling , most talented , and most wish well for intersection across the millions of items available on Amazon.com since its introduction 17 calendar week ago .
See above .
Amazon Appstore for Android client nearly treble in the fourth quarter compare to the third quarter . In addition , customers downloaded more apps from the Amazon Appstore during the fourth after part than they had during all premature quarters combine .
To be honest , this number seems astonishingly low . The Kindle Fire come out in Q4 , and if it really did sell millions and millions I would ’ve carry it to drive Amazon Appstore sales much more aggressively . Who used it before Kindle Fire , other than maybe the occasional day-by-day app deal ?
final cut-rate sale are await to be between $ 12.0 billion and $ 13.4 billion , or to grow between 22 % and 36 % compared with first quarter 2011 .
Another reason Amazon ’s stock is down : psychoanalyst had been projecting $ 13.4 billion revenue this current after part . By saying it expects to descend in below that , Amazon ’s indicate that the road might not be as smooth as has been take over .
The expectant matter to think , though , is that Amazon spent $ 17.4 billion on its own business in the last three months alone . Much of that proceed towards the raw Kindle occupation , Fire included . And while the number are clouded behind vague growth rates , there ’s no deny the fact that Amazon sold zillion of devices in the last three months , which means it has one thousand thousand more people hang out in its ecosystem , buying the books and apps and picture that make Amazon its real money , and will continue to for age to amount .
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