Amazon Skewered After Hours — Tuesday’s IP Market Recap

by Kyle Woodley | January 31, 2012 4:49 pm

IPMarketRecap Amazon Skewered After Hours    Tuesday's IP Market Recap[1]Amazon (NASDAQ:AMZN[2]) was punished in after-hours trading Tuesday after reporting significantly lower earnings and saying it could report a loss in the first quarter.

Amazon reported fourth-quarter earnings of $117 million (38 cents per share), down 57% from the year-ago period. While down, earnings were more than double analyst expectations of 17 cents per share. Revenue of $17.4 billion was up 34% from last year, but short of expectations for $18.3 billion.

Amazon also forecast Q1 earnings between $100 million and -$200 million. Analysts previously were expecting a $426 million profit.

AMZN shares, which had gained more than 1% in the lead-up, were down about 8% shortly after Tuesday’s closing bell.

Falling earlier Tuesday was Netflix (NASDAQ:NFLX[3]), which dropped more than 4% on news that British Sky Broadcasting Group — commonly known as BSkyB — was launching its own streaming video service. BSkyB’s service is a response to the American streaming giant, which recently began offering its own programming in the U.K.

However, Amazon and Netflix paled in comparison to RadioShack (NYSE:RSH[4]), which suffered its worst drop in more than 12 years on poor Q4 earnings and a suspension of its share buyback program.

RSH shares fell about 30% after the company reported earnings of 11 cents per share, down from 13 cents in the year-ago period and far shy of analyst expectations for 37 cents. RadioShack also said it would suspend stock repurchases for “the near-term.” Big-box electronics competitor Best Buy (NYSE:BBY[5]) also reacted to the news with a 5.6% decline of its own.

Three Up

Three Down

Kyle Woodley is the assistant editor of InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities. Check out recaps from previous trading days here[12].

Endnotes:
  1. [Image]: http://investorplace.com/hot-topics/investorplace-market-recap/
  2. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  3. NFLX: http://studio-5.financialcontent.com/investplace/quote?Symbol=NFLX
  4. RSH: http://studio-5.financialcontent.com/investplace/quote?Symbol=RSH
  5. BBY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBY
  6. REE: http://studio-5.financialcontent.com/investplace/quote?Symbol=REE
  7. PAY: http://studio-5.financialcontent.com/investplace/quote?Symbol=PAY
  8. VRTX: http://studio-5.financialcontent.com/investplace/quote?Symbol=VRTX
  9. PPO: http://studio-5.financialcontent.com/investplace/quote?Symbol=PPO
  10. RENN: http://studio-5.financialcontent.com/investplace/quote?Symbol=RENN
  11. TSL: http://studio-5.financialcontent.com/investplace/quote?Symbol=TSL
  12. here: http://investorplace.com/hot-topics/investorplace-market-recap/

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