{"id":15016,"date":"2012-11-10T22:01:45","date_gmt":"2012-11-11T06:01:45","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=15016"},"modified":"2012-11-10T22:01:45","modified_gmt":"2012-11-11T06:01:45","slug":"amazon-com-reports-first-net-loss-in-nine-years-so-buy-the-stock-of-course","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2012\/11\/10\/amazon-com-reports-first-net-loss-in-nine-years-so-buy-the-stock-of-course\/","title":{"rendered":"Amazon.com Reports First Net Loss In Nine Years, So Buy the Stock Of Course!"},"content":{"rendered":"<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on October 29, 2012. <a href=\"http:\/\/seekingalpha.com\/article\/957901-amazon-com-reports-first-net-loss-in-9-years-so-of-course-buy-the-stock\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n<blockquote><p>&#8220;If Amazon were an ordinary company, investors would long ago have strapped its management to a rocket ship and sent it far, far away.&#8221;<br \/>\nFrom &#8220;<a href=\"http:\/\/www.nytimes.com\/2012\/10\/26\/technology\/amazon-reports-its-first-quarterly-loss-in-four-years.html?_r=1\" target=\"_blank\">Amazon and Its Admirers Shrug Off Report of a Loss as Sales Keep Climbing<\/a>&#8220;, NY Times, October 26, 2012\n<\/p><\/blockquote>\n<p>By now, the resilience of Amazon.com (AMZN) should be legendary. AMZN is a company that generates large amounts of revenue and very little profit. Yet, the stock has staged an incredible comeback from the burst of the tech bubble&#8230;{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_15037\" aria-describedby=\"caption-attachment-15037\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-lt.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-lt.png\" alt=\"The resilient stock of Amazon.com\" title=\"The resilient stock of Amazon.com\" width=\"500\" height=\"350\" class=\"size-full wp-image-15037\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-lt.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-lt-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-15037\" class=\"wp-caption-text\">The resilient stock of Amazon.com<\/figcaption><\/figure><br \/>\n<\/center><\/p>\n<p>{snip} As the New York Times stated: &#8220;What separates Amazon from the competition is that it is not trying to make money. It is instead trying to grow as fast as it can, something it has been doing successfully for 15 years.&#8221;<\/p>\n<p><center><br \/>\n<figure id=\"attachment_15032\" aria-describedby=\"caption-attachment-15032\" style=\"width: 534px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121028_AMZN_SalesVsNetMargin.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121028_AMZN_SalesVsNetMargin.png\" alt=\"Amazon.com Sales Vs. Total Net Income As A Percent of Sales (Net Margin)\" title=\"Amazon.com Sales Vs. Total Net Income As A Percent of Sales (Net Margin)\" width=\"544\" height=\"309\" class=\"size-full wp-image-15032\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121028_AMZN_SalesVsNetMargin.png 544w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121028_AMZN_SalesVsNetMargin-300x170.png 300w\" sizes=\"auto, (max-width: 544px) 100vw, 544px\" \/><\/a><figcaption id=\"caption-attachment-15032\" class=\"wp-caption-text\">Amazon.com Sales Vs. Total Net Income As A Percent of Sales (Net Margin)<\/figcaption><\/figure><br \/>\n<strong>Source: <a href=\"http:\/\/investing.money.msn.com\/investments\/financial-statements?symbol=amzn\" target=\"_blank\">MSN Money Ten-Year Summary<\/a><\/strong><br \/>\n<\/center><\/p>\n<p><a href=\"http:\/\/seekingalpha.com\/article\/953931-wall-street-breakfast-must-know-news\" target=\"_blank\">The third quarter&#8217;s net loss was Amazon&#8217;s first in nine years<\/a> but seems consistent with the annual trend in place since the recession. {snip}<\/p>\n<p>On top of the rare loss, <a href=\"http:\/\/www.businessinsider.com\/amazon-q3-earnings-2012-10\" target=\"_blank\">AMZN guided down for Q4 revenue<\/a> and operating income&#8230; {snip}&#8230; So, it was no surprise when AMZN&#8217;s stock quickly dropped as much as 9% in after hours to print almost $200. However, as is so often the case with AMZN, this dip turned into an instant buying signal.{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_15034\" aria-describedby=\"caption-attachment-15034\" style=\"width: 490px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN.png\" alt=\"Amazon.com avoids a retest of its 200DMA with a strong post-earnings bounce\" title=\"Amazon.com avoids a retest of its 200DMA with a strong post-earnings bounce\" width=\"500\" height=\"350\" class=\"size-full wp-image-15034\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN.png 500w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-300x210.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption id=\"caption-attachment-15034\" class=\"wp-caption-text\">Amazon.com avoids a retest of its 200DMA with a strong post-earnings bounce<\/figcaption><\/figure><br \/>\n<strong>Source: <a href=\"www.freestockcharts.com\" target=\"_blank\">FreeStockCharts.com<\/a><\/strong><br \/>\n<\/center><\/p>\n<p>Since the beginning of this year, <a href=\"http:\/\/seekingalpha.com\/article\/344611-why-amazon-com-was-a-buy-at-the-open-after-reporting-earnings\" target=\"_blank\">I have advocated a strategy of buying AMZN immediately at the open the day after reporting earnings<\/a>. {snip}<\/p>\n<p>Finally, I am updating the overall post-earnings analysis for AMZN. {snip}<\/p>\n<p><em><strong>Click for a larger view&#8230;<\/strong><\/em><br \/>\n<center><br \/>\n<figure id=\"attachment_15040\" aria-describedby=\"caption-attachment-15040\" style=\"width: 290px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121028_AMZN_PostEarningsReturns.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121028_AMZN_PostEarningsReturns-300x147.png\" alt=\"Returns for Buying Amazon.com&#039;s Post-Earnings Open or Close With A Stop-Loss Rule\" title=\"Returns for Buying Amazon.com&#039;s Post-Earnings Open or Close With A Stop-Loss Rule\" width=\"300\" height=\"147\" class=\"size-medium wp-image-15040\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121028_AMZN_PostEarningsReturns-300x147.png 300w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121028_AMZN_PostEarningsReturns-1024x504.png 1024w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121028_AMZN_PostEarningsReturns.png 1087w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><figcaption id=\"caption-attachment-15040\" class=\"wp-caption-text\">Returns for Buying Amazon.com&#039;s Post-Earnings Open or Close With A Stop-Loss Rule<\/figcaption><\/figure><br \/>\n<strong>Source: Price data from Yahoo!Finance<\/strong><br \/>\n<\/center><\/p>\n<p><strong>CHARTS FOR AMZN EARNINGS SINCE 2009<\/strong><\/p>\n<p><strong>2009 Q1<\/strong><br \/>\n<center><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2009Q1.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2009Q1.png\" alt=\"\" title=\"120201_AMZN-2009Q1\" width=\"520\" height=\"429\" class=\"aligncenter size-full wp-image-9708\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2009Q1.png 520w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2009Q1-300x247.png 300w\" sizes=\"auto, (max-width: 520px) 100vw, 520px\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2009 Q2<\/strong><br \/>\n<center><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2009Q2.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2009Q2.png\" alt=\"\" title=\"120201_AMZN-2009Q2\" width=\"520\" height=\"429\" class=\"aligncenter size-full wp-image-9708\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2009 Q3<\/strong><br \/>\n<center><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2009Q3.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2009Q3.png\" alt=\"\" title=\"120201_AMZN-2009Q3\" width=\"520\" height=\"429\" class=\"aligncenter size-full wp-image-9708\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2009 Q4<\/strong><br \/>\n<center><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2009Q4.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2009Q4.png\" alt=\"\" title=\"120201_AMZN-2009Q4\" width=\"520\" height=\"429\" class=\"aligncenter size-full wp-image-9708\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2010 Q1<\/strong><br \/>\n<center><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2010Q1.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2010Q1.png\" alt=\"\" title=\"120201_AMZN-2010Q1\" width=\"520\" height=\"429\" class=\"aligncenter size-full wp-image-9708\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2010 Q2<\/strong><br \/>\n<center><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2010Q2.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2010Q2.png\" alt=\"\" title=\"120201_AMZN-2010Q2\" width=\"520\" height=\"429\" class=\"aligncenter size-full wp-image-9708\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2010 Q3<\/strong><br \/>\n<center><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2010Q3.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2010Q3.png\" alt=\"\" title=\"120201_AMZN-2010Q3\" width=\"520\" height=\"429\" class=\"aligncenter size-full wp-image-9708\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2010 Q4<\/strong><br \/>\n<center><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2010Q4.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2010Q4.png\" alt=\"\" title=\"120201_AMZN-2010Q4\" width=\"520\" height=\"429\" class=\"aligncenter size-full wp-image-9708\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2011 Q1<\/strong><br \/>\n<center><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2011Q1.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2011Q1.png\" alt=\"\" title=\"120201_AMZN-2011Q1\" width=\"520\" height=\"429\" class=\"aligncenter size-full wp-image-9708\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2011 Q2<\/strong><br \/>\n<center><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2011Q2.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2011Q2.png\" alt=\"\" title=\"120201_AMZN-2011Q2\" width=\"520\" height=\"429\" class=\"aligncenter size-full wp-image-9708\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2011 Q3<\/strong><br \/>\n<center><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2011Q3.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2011Q3.png\" alt=\"\" title=\"120201_AMZN-2011Q3\" width=\"520\" height=\"429\" class=\"aligncenter size-full wp-image-9708\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2011 Q4<\/strong><br \/>\n<center><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2011Q4.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/02\/120201_AMZN-2011Q4.png\" alt=\"\" title=\"120201_AMZN-2011Q4\" width=\"520\" height=\"429\" class=\"aligncenter size-full wp-image-9708\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2012 Q1<\/strong><br \/>\n<center><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-2012Q1.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-2012Q1.png\" alt=\"\" title=\"\" width=\"525\" height=\"316\" class=\"aligncenter size-full wp-image-15042\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-2012Q1.png 525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-2012Q1-300x180.png 300w\" sizes=\"auto, (max-width: 525px) 100vw, 525px\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2012 Q2<\/strong><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-2012Q2.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-2012Q2.png\" alt=\"\" title=\"\" width=\"525\" height=\"316\" class=\"aligncenter size-full wp-image-15043\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-2012Q2.png 525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-2012Q2-300x180.png 300w\" sizes=\"auto, (max-width: 525px) 100vw, 525px\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>2012 Q3<\/strong><br \/>\n<a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-2012Q3.png\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-2012Q3.png\" alt=\"\" title=\"\" width=\"525\" height=\"316\" class=\"aligncenter size-full wp-image-15044\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-2012Q3.png 525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2012\/10\/121026_AMZN-2012Q3-300x180.png 300w\" sizes=\"auto, (max-width: 525px) 100vw, 525px\" \/><\/a><br \/>\n<\/center><\/p>\n<p><strong>Source for charts: <a href=\"http:\/\/stockcharts.com\/h-sc\/ui\" target=\"_blank\">stockcharts.com<\/a><\/strong><\/p>\n<p>Be careful out there!<\/p>\n<p><strong>(This is an excerpt from an article I originally published on Seeking Alpha on October 29, 2012. <a href=\"http:\/\/seekingalpha.com\/article\/957901-amazon-com-reports-first-net-loss-in-9-years-so-of-course-buy-the-stock\" target=\"_blank\">Click here to read the entire piece<\/a>.)<\/strong><\/p>\n<p>Full disclosure: long AMZN<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(This is an excerpt from an article I originally published on Seeking Alpha on October 29, 2012. Click here to read the entire piece.) &#8220;If Amazon were an ordinary company, investors would long ago have strapped its management to a rocket ship and sent it far, far away.&#8221; From &#8220;Amazon and Its Admirers Shrug Off &#8230; <a title=\"Amazon.com Reports First Net Loss In Nine Years, So Buy the Stock Of Course!\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2012\/11\/10\/amazon-com-reports-first-net-loss-in-nine-years-so-buy-the-stock-of-course\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[220,599],"tags":[495,398,998,967],"class_list":["post-15016","post","type-post","status-publish","format-standard","hentry","category-earnings","category-internet","tag-amazon-com","tag-amzn","tag-correlations","tag-earnings-play"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Amazon.com Reports First Net Loss In Nine Years, So Buy the Stock Of Course! - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2012\/11\/10\/amazon-com-reports-first-net-loss-in-nine-years-so-buy-the-stock-of-course\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amazon.com Reports First Net Loss In Nine Years, So Buy the Stock Of Course! - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"(This is an excerpt from an article I originally published on Seeking Alpha on October 29, 2012. Click here to read the entire piece.) &#8220;If Amazon were an ordinary company, investors would long ago have strapped its management to a rocket ship and sent it far, far away.&#8221; From &#8220;Amazon and Its Admirers Shrug Off ... 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