Amazon.com’s Earnings Mixed; Shares Crash (AMZN)

Amazon.com Inc AMZN reports Q2 EPS $0.45 vs consensus of $0.54. Amazon.com Inc reports Q2 revenue $6.57 billion vs consensus of $6.54 billion. Free cash flow increased 29% year over year on a net sales increase of 41% year over year. As for guidance, the company said net sales are expected to be between $6.900 billion and $7.625 billion, or to grow between 27% and 40% compared with third quarter 2009. Operating income is expected to be between $210 million and $310 million, or between 16% decline and 24% growth compared with third quarter 2009. "We're seeing rapid growth in Kindle, Amazon Web Services, third-party sales, and retail. We're also encouraged by what we see in mobile. In the last twelve months, customers around the world have ordered more than $1 billion of products from Amazon using a mobile device," said Jeff Bezos, founder and CEO of Amazon.com. He added, “The leading mobile commerce device today is the smartphone, but we're excited by the potential of the new category of wireless tablet computers. Over time, tablet computers could become a meaningful additional driver for our business." Shares of AMZN are lower in the after-hours by 10.60%, at $107.34