Amazon.com, Inc. (NASDAQ:AMZN) released its earnings report for the three months ending June 30 this afternoon after the market closed on Wall Street. The company showed a loss of $0.02per share for the three month period on revenue of $15.7 billion. On today’s market, shares in the online retailer grew to $303.40.
In the run up to the announcement of this earnings report analysts following Amazon.com, Inc. (NASDAQ:AMZN) were looking for earnings per share of 5 cents on revenue totaling $15.7 billion. In the same three months of 2012, Amazon earned 16 cents per share on revenue of $12.8 billion.
Yost Partners was up 0.8% for the first quarter, while the Yost Focused Long Funds lost 5% net. The firm's benchmark, the MSCI World Index, declined by 5.2%. The funds' returns outperformed their benchmark due to their tilt toward value, high exposures to energy and financials and a bias toward quality. In his first-quarter letter Read More
Amazon.com, Inc. (NASDAQ:AMZN) has an unusual business model, and one that investors took some time to warm up to. The company does not believe in profit now, and prefers to invest in pricing and in services in order to expand its revenue base. Theoretically this should allow the company to really benefit when the internet matures as a market place.
Investing in Amazon’s future
Because of the unique Amazon.com, Inc. (NASDAQ:AMZN) take on internet business, which rings of the frontier and staking out one’s claim, the company is extremely highly valued. Amazon actually made a loss in 2012, and it’s projected to bring in just $1.26 per share in 2013. That puts its 2013 P/E at around 240.
Investors expect Amazon to do great things in the future, so they’re willing to let the company earn less now and still buy shares at a high price. Since the start of the year, the company’s shares are up more than 20%, beating the S&P 500 and the Nasdaq gains in the same period.
An investment in Amazon.com, Inc. (NASDAQ:AMZN) at this current price presumes a large amount of growth in the coming years, and not just from the company’s iconic online retail outlet. Amazon.com has a large amount of businesses under the hood, and some of them are not widely known, even by those who follow the company.
Amazon is not just a retailer
Amazon.com, Inc. (NASDAQ:AMZN) has become one of the most important digital content distributors in the world in recent years with movies, books, mobile apps, music and video games all passing through its various storefronts, but that’s far from the most exciting business Amazon has under its sleeve.
Amazon Web Services, which recently beat International Business Machines Corp. (NYSE:IBM) for a contract with the CIA, is, among other things, a cloud computing network. Amazon.com, Inc. (NASDAQ:AMZN) has a deck full of cards, and investors are sure the company can succeed.