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Amazon Poised for Earnings Report, and Why It Matters to Kindle Customers

By Stephen Windwalker

Any company’s profitability and share-price performance can be significant in a variety of ways for people who are invested either in those shares, or in the company’s most important product, or both. For those of us in Kindle Nation, Amazon’s corporate viability is especially important because the long-term value of our ownership of Kindle hardware and Kindle content is based in part on assumptions that the company will continue to support the hardware, the Kindle store and apps, and the “cloud” in which our archived content is maintained.

So, it’s probably worth mentioning here that Amazon will report its quarterly earnings for the first quarter of 2010 as the stock markets close at around 4 p.m. ET today, with a webcast conference call to follow about an hour later. Here are links for each event:

In early trading at the opening of the markets today, Amazon’s shares are offered at just over $147, double their 52-week low and within a whisker of their all-time high.

In the first quarter of 2009 Amazon’s earnings were 41 cents a share on revenue of $4.89 billion, and the company’s recent guidance for the quarter to be reported today called for revenue of $6.45 to $7 billion. “Market consensus” calls for first-quarter 2010 earnings of 51 to 76 cents per share on revenue of $6.56 to $7 billion.

Disclosure: My household has a minor long position in AMZN stock, valued currently at about $235 million less than the value, at the time, of Amazon shares that Amazon CEO Jeff Bezos sold in mid-February.

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