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RealTime IT News

Amazon Warns, To Cut 15% Of Workforce

Amazon.com beat estimates after the bell, but the company warned of lower than expected future results and announced that it will cut 15% of its workforce.

The ISDEX http://www.wsrn.com/apps/ISDEX/ slipped 4 to 438, and the Nasdaq traded about as close to unchanged as possible: up 0.01 to 2838.35. The S&P 500 climbed 9 to 1373, and the Dow soared 179 to 10,881. Volume rose to 1.13 billion shares on the NYSE, and 2.05 billion on the Nasdaq. Advancers led 18 to 12 on the NYSE, and 21 to 16 on the Nasdaq. The Federal Reserve will announce its decision on interest rates at 2:15 tomorrow; traders are expecting a 50-basis point rate cut. Consumer confidence fell to its lowest level in four years, and consumers' expectations for the future fell to recessionary levels. Fourth quarter GDP will be reported tomorrow morning. For earnings reports, visit our earnings calendar at http://www.wsrn.com/apps/earnings/internet.xpl and reported earnings at http://www.wsrn.com/apps/earnings/ireported.xpl. For after hours quotes and news, visit our after hours trading site at http://www.afterhourstrading.com.

After the bell, Amazon beat estimates by a penny with a 25-cent loss, but the company warned that first quarter revenues will be 15-20% below estimates. Amazon said it will cut 1,300 jobs, or 15% of its workforce, and said it still expects to reach profitability by the end of the year. The stock fell 1 to 19 in after hours trading. Also after hours, Adobe and Applied Materials warned, while Advanced Fibre , Aware and PeopleSoft topped estimates. RealNetworks matched estimates.

During the day, InfoSpace slipped 3/8 to 5 5/8 despite topping estimates by 3 cents with 4-cent earnings. But the company warned of future results and announced a major shift in business focus away from its consumer portals.

Nokia fell 1.71 to 35.28 after warning of weaker than expected results, continuing a string of troubles for wireless handset makers.

AvantGo soared 1 7/8 to 9 3/8 on an alliance with Research In Motion . AVGO reports earnings tonight.

AOL Time Warner lost .25 to 54.75 ahead of its earnings report tomorrow morning.

Brocade dropped 6 7/16 to 98 1/2 on negative comments from Goldman Sachs.

Ariba edged 1/8 higher to 38 1/2 on positive comments from Lehman Brothers, which said the company's acquisition of Agile fills a need for a collaborative product design offering.

eGain surged 27/32 to 5 3/4 after beating estimates and announcing that it expects to be breakeven by the end of the year. iBasis , up 2 to 9 3/16, said it expects to achieve profitability in the first quarter of 2002, and also announced a partnership with red-hot Openwave .

Expedia tacked on 5/8 to 17 3/8 after beating estimates by 9 cents with a 6-cent loss. Eathlink also beat by 9 cents, with a loss of 42 cents, but the stock gave back 1/16 to 8 7/16.

MarketWatch.com , up 3/16 to 4 1/2, topped estimates, as did Hoover's , off 5/16 to 3 9/16.

Some technical comments on the market: Note: We are now including charts in the technical market commentary. If you can't get the charts via the e-mail newsletter version, try this link: http://www.afterhourstrading.com/column.html

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