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RealTime IT News

Amazon Stands Tall

Amazon.com showed late Tuesday that it still has the stuff to wow Wall Street.

Amazon reported second-quarter earnings and revenues after the close that topped analysts' forecasts, and the company's third-quarter quarter guidance was also better than expected. The company's shares jumped 9% in after-hours trading.

Amazon's earnings of 12 cents a share beat estimates by 2 cents, and revenues rose 26% from the year-ago quarter to $1.75 billion, also ahead of estimates. Looking ahead, Amazon predicted sales of $1.76-$1.91 billion for the current quarter, which compares favorably to the $1.81 billion consensus estimate.

For one day, at least, investors and analysts won't be fretting about free shipping or calling for Amazon founder Jeff Bezos to turn over the reigns to a professional CEO.

"Amazon Prime members love getting unlimited two-day shipping for free with no minimum order size," Bezos said in a statement. "Though expensive for the company, Amazon Prime creates a premium experience for customers who join, and as a result we hope they'll purchase more from us in the long term."

Also after the close, Sun Microsystems beat estimates by a nickel with a 6-cent profit, and Corning also topped forecasts. InfoSpace warned, Siebel missed estimates, and Iomega announced 30% job cuts.

Stocks were mixed Tuesday, as strong technology earnings competed against an unexpected drop in consumer confidence, with big layoffs from the likes of HP beginning to weigh on consumer sentiment.

The Nasdaq rose 9 to 2175, the S&P added 2 to 1231, and the Dow lost 16 to 10,579. Volume rose to 1.93 billion shares on the NYSE, and 1.72 billion on the Nasdaq. Advancers led 19-13 on the NYSE, and 17-12 on the Nasdaq. Upside volume was 59% on the NYSE, and 66% on the Nasdaq. New highs-new lows were 222-27 on the NYSE, and 136-27 on the Nasdaq.

Shares of Texas Instruments leapt 5.6% on better than expected results and guidance, and shares of Netflix , Avaya , J2 Global , Tellabs , On Semi , CNET and JDA rose on their results.

Agere and Lexmark fell on their results.

And BroadVision , once a member of the S&P 500, will be acquired by Vector Capital for 84 cents a share and go private. The company was facing a second-half cash crunch.



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