Amazon (AMZN) Stock Sheds Over 30 Points As Q4 Revenue, Guidance Disappoint

Amazon AMZN Stock

Amazon.com, Inc. (NASDAQ:AMZN) stock plunged more than 30 points in after-hours trading Thursday after the company announced fiscal results for its fourth-quarter ended Dec. 31, 2016.

In its quarterly report, the e-commerce giant said it earned $1.54 per share, well above the $1.42 per share analysts were expecting. Revenue rose 22.4% year-over-year (y/y) to $43.74 billion driven by strong sales in the holiday period and a jump in subscriptions for Amazon Prime service.

Amazon said last month that the 2016 holiday was its best-ever shopping season. That said however, the number came in nearly $1 billion below Street views for $44.7 billion.

Meanwhile, revenue in Amazon web services, the company’s cloud computing business, rose by 47%, y/y, to $3.54 billion.

“With millions of active customers, AWS continues to grow, and enterprise customers have committed to migrating tens of thousands of applications to AWS,” the company said in a statement.

While the AWS results looked strong, the figure comes in below analyst expectations for 3.6 billion for the division, so a miss as well.

Amazon founder and CEO Jeff Bezos did not address the revenue miss in his co.’s press release about the results Thursday afternoon, instead highlighting customers’ “obsession” with the company’s “Amazon Prime” member service. He noted that the “Prime Video” streaming offering “is now available in more than 200 countries and territories…Tens of millions of new paid members joined the program in just this past year.”

For the current quarter, the Seattle-based online retailer guided Q117 revenues of $33.25 billion to 35.75 billion, as compared to analysts’ expectations of $36 billion. It cited foreign exchange effects of about $730 million or 250 basis points.

Amazon Stock Action/Valuation

Amazon stock is down $35.28 to $804.67 in after-hours trading today. It closed Thursday’s trading session at $839.95, up nearly 8 points, or 0.91%, on the Nas. Approximately 7 million shares changed hands during regular hours, compared to the stock’s average daily volume of 4.06 million shares.

On valuation-measures, shares of Amazon.com, Inc. have a trailing-12 and forward P/E of 192.43 and 97.44, respectively. P/E to growth ratio is 4.85, while t-12 profit margin is 1.64%. EPS registers at $4.37. The company has a market cap of about $399 billion and a median Street price target of $945 with a high target of $1,250.00.

On trading-measure, AMZN has a beta of 1.43 and a short float of 5.8 million. In the past 52 weeks, AMZN shares have traded between a low of $474.00 and a high of $847.21, with 50-day moving average (MA) and 200-day MA located at $792.83 and $782.24 levels, respectively.

Amazon currently prints a one year return of about 58% and a year-to-date return of around 12%.

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