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RealTime IT News

Amazon Beats Earnings Estimates, But Misses Revenue Number

Shares of Amazon.com fell after hours on Wednesday after the online retailer beat earnings estimates but reported revenues that were beneath most analysts' forecasts. InfoSpace reported that it is buying Go2Net, and VeriSign reported a surprise profit.

Stocks traded lower during the day, as investors remained unimpressed by even better than expected earnings reports. The ISDEX fell 12 to 771, but well above its intraday low of 749. The Nasdaq lost 41 to 3987, but up 80 points from its low for the day. The Dow and S&P 500 ended at their lows of the day, the final drop coming on index rebalancing as JDS Uniphase was added to the S&P 500. The S&P dropped 22 to 1452, and the Dow lost 183 to close at 10,516. Volume rose to 1.17 billion shares on the NYSE and 1.66 billion on the Nasdaq. Chip stocks were down 6%. Decliners led by 14 to 13 on the NYSE and 23 to 15 on the Nasdaq. The major economic reports for the week are the second-quarter Employment Cost Index tomorrow and the GDP on Friday. For earnings reports, visit our earnings calendar and reported earnings.

Amazon.com fell 2 to 35 5/8 in regular trading and fell another $2 after hours after reporting a second-quarter loss of 33 cents a share, 2 cents better than estimates. But revenues came in at $578 million, below estimates of $585 million. Analysts got in on the action even before the earnings came out. Lehman Brothers downgraded the stock from Buy to Neutral during the day, citing softness in key consumer metrics, substantial execution risks, and expensive valuation.

InfoSpace announced that it is buying Go2Net for 1.82 shares for each share of GNET, valuing profitable GNET at about $87 a share based on Wednesday's closing prices. InfoSpace also announced a second-quarter loss of 1 cent per share, a nickel better than estimates. Go2Net fell 1 9/16 to 60 9/16 in regular trading, and InfoSpace gained 1 7/16 to 47 3/4. InfoSpace fell to 40 after hours, and Go2Net rose to 68.

VeriSign reported earnings of 7 cents a share, 9 cents better than estimates. The stock declined 2 11/16 to 179 3/16 in regular trading and rose to 180 after hours.

VerticalNet reported earnings of 23 cents a share, 7 cents ahead of estimates. The stock fell to 54 after hours after slipping 5/8 to 56 3/4 in regular trading.

JDS Uniphase reported earnings of 14 cents a share, 2 cents better than expected. The stock rose 5 13/16 to 136 ahead of being added to the S&P, but slipped to 134 after earnings came out. The stock has been struggling to stay above its 130-131 breakout point.

WebMethods beat estimates by 3 cents with a 16-cent loss. The stock declined 8 1/8 to 133 1/8 in regular trading and slipped to 132 after hours. NBC Internet reported a loss of 81 cents, 4 cents better than forecasts. The stock slipped 5/8 to 11 1/2 in regular trading and rose to 12 after hours.

Looksmart reported a second-quarter loss of 9 cents a share, 5 cents better than estimates. The stock fell 1 21/32 to 21 1/32 in regular trading and was unchanged after hours. Covad beat estimates by 13 cents with an 86-cent loss. The stock declined 9/16 to 17 11/16 in regular trading and rose to 18 1/2 after hours.

Only a handful of net stocks that beat estimates after the close on Tuesday traded higher on Wednesday.

eBay fell 3 33/64 to 52 23/32 despite reporting earnings of 5 cents a share, 2 cents better than expected, and revenues that nearly doubled to $97.4 million. The only negative was that the company didn't guide forward earnings higher, saying it was comfortable with estimates.

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