Amazon Plunging After Revenue Miss (AMZN)

Amazon.com Inc. AMZN reported fourth quarter earnings that missed on the top line, but beat on the bottom line, and shares are plunging in after-hours trading. Amazon reported fourth quarter earnings of 91 cents per share, versus Wall Street estimates of 88 cents per share. Revenues were expected to come in at $13 billion, and Amazon reported revenues of $12.95 billion. The company said it sees first quarter revenues of $9.1-$9.9 billion, versus the Wall Street estimate of $9.3 billion. “Thanks to our customers, we achieved two big milestones,” said Jeff Bezos, founder and CEO of Amazon.com. “We had our first $10 billion quarter, and after selling millions of third-generation Kindles with the new Pearl e-ink display during the quarter, Kindle books have now overtaken paperback books as the most popular format on Amazon.com. Last July we announced that Kindle books had passed hardcovers and predicted that Kindle would surpass paperbacks in the second quarter of this year, so this milestone has come even sooner than we expected – and it's on top of continued growth in paperback sales.” Shares are plunging in the after hours trading session, down $17.99 to $166.46, a loss of almost 10%.