10 Updates

Jeff Bezos Loses $2.8 Billion In A Day

Apr 25 2014, 5:36pm CDT | by

Amazon.com was chipper late Thursday about its first-quarter earnings report. On Friday, Wall Street offered its view about the results and the outlook. It wasn’t pretty. Especially for founder and...

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13 weeks ago

Jeff Bezos Loses $2.8 Billion In A Day

Apr 25 2014, 5:36pm CDT | by

Amazon.com was chipper late Thursday about its first-quarter earnings report.

On Friday, Wall Street offered its view about the results and the outlook. It wasn’t pretty. Especially for founder and CEO Jeff Bezos .

The shares fell 9.9% to $303.83, their lowest close since Oct. 9, when they finished at $298.23. The percentage loss was its largest since Jan. 31, when the shares fell 11% after revenue and profits missed forecasts.

The plunge cut the value of Bezos’ stake in the company by nearly $2.8 billion in just one day.

Amazon shares are now down 25.5% since hitting $408.06 on an intraday basis on Jan. 22. They’re off 25.4% since its closing high of $407.05 on Jan. 21.

So, what was the problem? Guidance. Amazon said it could post an operating loss of $455 million in the second quarter — or a profit of $55 million. That more than offset its expectation that revenue could grow 15% to 26% from last year’s second quarter, to $18.1 billion to $$19.8 billion.

The guidance undid the fact that revenue of $19.74 billion in the quarter were up 23% from a year earlier and beat estimates. Earnings of 23 cents were up from 18 cents a year ago and were in line with estimates.

And there was no indication from anyone that the company was becoming more focused on delivering positive earnings. The company expects to expand its expansion of its fulfillment centers. It will produce more original video content. It inked a deal with Home Box Office to make videos of older series available on its Amazon Prime Instant Video service next month and will make HBO’s HBO Go service available on its new Fire TV set-top box by year-end.

Maybe they didn’t like Amazon’s disclosure that it was cutting prices for its Amazon Web Services, its cloud-computing operation.

And maybe investors were unnerved by a Wall Street Journal photo of Amazon gearing up trucks in the San Francisco area to deliver packages itself. Good for ensuring packages arrive on time. Not so good because Amazon could assume more costs of fulfilling customer orders.

Friday’s plunge means the market capitalization of Amazon has fallen from nearly $194 billion to $144.6 billion, based on 476 million outstanding shares. Bezos, who said the year had gotten off to a “kinetic start,” has seen the value of his stake in Amazon fall from $34.1 billion to $25.4 billion. Bezos owns nearly 84 million Amazon.com shares, 18% of the shares outstanding.

Amazon was the worst performer among stocks in the Standard & Poor’s 500 Index and the Nasdaq-100 Index. Stocks had a rotten day overall, in part because of worries about Russia and Ukraine tensions.

It may be unfair to concentrate on Amazon because of a number of momentum stocks have battered since peaking earlier this year. Tesla Motors shares are down 23% from their March 4 peal. So, CEO Elon Musk’s 35 million shares have fallen about $1.9 billion. Google’s class A shares are down 14.3% since Feb. 25. So, theoretically co-founder Larry Page’s net worth has been trimmed from $28.6 billion in February to only $24.6 billion.

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the Dewan Rak ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken int ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk S ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the so ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in compensatio ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan B ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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