Shares of Amazon.com tumbled more than 10% after hours Wednesday after the company’s earnings came in shy of Wall Street estimates.
Amazon’s revenues rose 30% to $2.54 billion, beating $2.42 billion estimates, but pro forma earnings of 35 cents a share were a nickel shy of estimates, as earnings were pressured by rising costs and falling prices.
The company also raised full-year sales guidance while lowering operating income guidance, suggesting that the trend will continue.
A new company program announced Wednesday that offers loyal customers free express shipping for $79 a year is likely to make investors even more nervous about rising costs and falling prices at the online retailing giant.
Also after the close, CNET warned, and Mercury Interactive
beat estimates and raised guidance. i2
announced a 1-for-25 reverse split to escape penny stock status.
Stocks rose during the day despite the Federal Reserve’s sixth interest rate increase in the last year, as strong earnings news from Google , Adobe
and Boeing
encouraged investors.
The Nasdaq rose 6 to 2075, the S&P 500 climbed 3 to 1193, and the Dow gained 44 to 10,596. Volume declined to 1.59 billion shares on the NYSE, and rose to 1.98 billion on the Nasdaq. Advancers led 20-12 on the NYSE, and 17-13 on the Nasdaq. Upside volume was 67% on the NYSE, and 58% on the Nasdaq. New highs-new lows were 332-8 on the NYSE, and 148-32 on the Nasdaq.
Google and Adobe
gained 7% each on strong results, but Monster
fell by that much on a warning.
Neoware soared 18% on its results, and Nvidia
gained 5.5% after raising guidance.
Black Box , AsiaInfo
and Drugstore.com
tumbled on disappointing results.
