Special Offer Ends Soon!

“Underground” System Tracks Hidden Hedge Fund Trades

Millionaire Trader, Taylor Conway, creates Bloomberg scanner to track “Dark Pool” activity, opening the door for huge potential returns.

Learn how to position yourself for profit, before the markets move!

Amazon earnings are weaker than investors think

Jeff BishopJeff Bishop ·

The story: Amazon.com (AMZN) looks like it’s “taking over the world,” after it bought Whole Foods Market, and now it’s trying to get into the health care business. AMZN released its 3Q 2017 earnings report in October, and the results weren’t as strong as some investors think.

Why AMZN’s earnings aren’t as strong: AMZN actually reported earnings per share (EPS) of 52 cents, which was flat year-over-year. Moreover, net income of $256M in 3Q 2017 was just a 1.6% increase from the prior year. Although Amazon was able to grow its revenue by 34% from a year earlier, beating analyst estimates year-over-year and beat analyst estimates, net income and EPS are more important figures.

With AMZN’s net income falling, investors may be paying an abnormally high price per $1 in EPS.

Amazon also had an immense rise in goodwill, up more than 200% quarter-over-quarter (QoQ). Not only that, but the company has taken on a lot of long-term debt, and the big hike in long-term debt could hamper future earnings growth and the ability to increase EPS. Interest expenses alone could be over $500 million going forward, compared to net income of $2.37 billion in 2016.

What to look for next: The next earnings release is still a few months off, but I’ll be focused on any material changes the company might have, such as entering into the drug business, or new acquisitions.


The chart shows an obvious gap; with coming earnings announcements, I think AMZN could potentially pull back and start to fill the gap. Again, that’s a few months away, but it’s what I’ll be thinking about every time someone talks up Amazon in the meantime.


   Jeff Bishop is lead trader at TopStockPicks.com. He runs short-term trading strategies, primarily using leveraged ETFs.  At the time this article was published on RagingBull.com, he had no shares, options or open orders in AMZN.

Trending Now

Bull or Bear Market….It Doesn’t Matter

Kyle Dennis’ new, 5 min strategy is poised to double account sizes weekly! “I got out of GE trade at 379% $0.16-$0.77, thanks Kyle!” Said client Lance P. Check out the free training that started it all. (View Free Training)

SuperNova Service Leading Clients to 5-Figure Profits Consistently

“BOOM!!! Booked another $13,985 in profits on my long position $VMNGF. Great report came out premarket. Thanks Jeff at SuperNova for teaching me to make $$$ in the market.” Said Todd V. Jeff Williams is helping transform small accounts daily. Don’t miss his free walkthrough. (Watch Now)

Jeff Bishop, RagingBull.com Co-Founder, “Trading My Strategy Takes A Few Minutes a Day!” 

“Jeff, I have to say I was a little gun shy, but I bought the lifetime service (to Bullseye Trades) Friday night. First trade with your service…in LULU, 205 Calls at $4.70. (I) was going to be away from all internet connections for the next 3 days. It hit my sell price at $6.25 ;)” said James W.    (Read More)

Be a Better Stock Trader, Starting Today

Get the expert insights, tips and strategies you need to optimize your trading skills and profiles