Shares of Amazon.com soared 10% in after-hours trading Tuesday after the company handily beat Wall Street estimates.
Amazon’s sales rose 24% to $2.31 billion, ahead of $2.25 billion estimates. Earnings of 5 cents a share were down 2 cents from the year-ago quarter, as the company continued to invest in technology and content, but still above 3-cent forecasts.
Looking ahead, the online retailing giant’s guidance of $3.63-$3.95 billion for the all-important fourth-quarter holiday season compared favorably to $3.68 billion estimates.
CEO Jeff Bezos said in a statement, “We look forward to seeing significant sequential improvement in operating leverage this Q4, even as we continue to invest in many initiatives, including new retail categories, seller platforms, web services and digital.”
Amazon’s stellar results came just one quarter after the company tumbled after missing estimates.
Stocks were mixed during the day, as weak results from Texas Instruments weighed on the tech sector as the Dow hit a new record on optimism ahead of GM’s
results. The Federal Reserve’s decision on interest rates will be released Wednesday afternoon.
Alcatel and Lucent
gained on better than expected results. They expect their merger to close by the end of the year.
Netflix , Travelzoo
and Interactive Intelligence
gained on their results.
Tellabs , Lexmark
and Zoran
fell on their results.
The Nasdaq lost 10 to 2344, the S&P 500 added a fraction to 1377, and the Dow gained 11 to 12,127. Volume rose to 2.72 billion shares on the NYSE, and 1.96 billion on the Nasdaq. Advancers led 18-14 on the NYSE, while decliners led 17-12 on the Nasdaq. Upside volume was 60% on the NYSE, and 30% on the Nasdaq. New highs-new lows were 236-17 on the NYSE, and 139-54 on the Nasdaq.
