Amazon Gets A PE Ratio

Amazon will finally have a PE ratio.

After completing its first profitable year, Amazon will finally have positive 12-month trailing results, and thus will finally get a price-to-earnings ratio, that most common measure of stock valuation.

Amazon reported fourth-quarter results after the close on Tuesday, meeting earnings estimates of 29 cents a share and beating revenue estimates with $1.95 billion in sales. Full-year guidance of $6.2-6.7 billion in sales also exceeded guidance.

But the stock fell in after hours trading, as investors sold on the news. Nothing like a PE ratio to remind you how expensive a stock is.

Also after the close, Broadcom , Emulex , Flextronics , Avaya , Cymer and InfoSpace beat estimates. Advanced Fibre missed, and Network Associates and RedEnvelope warned.

Stocks fell sharply during the day on a warning from Novellus and a weaker than expected consumer confidence reading.

The Nasdaq plunged 37 to 2116, the S&P 500 lost 11 to 1144, and the Dow dropped 92 to 10,609. Volume rose to 1.63 billion shares on the NYSE, and 2.19 billion on the Nasdaq. Decliners led 18-14 on the NYSE, and 19-12 on the Nasdaq. Downside volume was 61% on the NYSE, and 76% on the Nasdaq. New highs-new lows were 413-5 on the NYSE, and 321-5 on the Nasdaq.

Texas Instruments and Altera tumbled on their results.

Agilent , Agere and Silicon Labs surged on their earnings.

RealNetworks gained 7% on an acquisition.

Microsoft lost ground on EU anitrust worries.

Earthlink tumbled on a downgrade despite strong results.

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