Amazon shares AMZN made history when AMZN skyrocketed on posting a surprise second quarter profit. Read this article that explains 8 things that you should know about Amazon. On Friday morning Amazon share rose a spectacular 20% in just one day. But Amazon stunning profit maybe short lived. Analysts surveyed by FactSet had been expecting Amazon to report a loss per share of 15 cents on sales of $22.4 billion. Instead, after the closing bell Thursday, Amazon posted earnings per share of 19 cents on sales of $23.1 billion, with its Amazon Web Services business growing 81% from the year-earlier period.
Compare this with Apple. Apple reported a record profit and it’s stock AAPL fell by 8% while Amazon only reported a tiny profit and its shares AMZN rose by a spectacular 20%. Does this prove that the markets are irrational and just nuts.
“This market is just nuts,” Sucharita Mulpuru, an analyst with Forrester Research, told the New York Times. “Amazon’s profit is effectively 0% of revenue and everyone cheers. Apple grows faster and has a profit that is 20% of revenue, and the stock tanks. Amazon’s stock price doesn’t seem to be correlated to its actual experience in any way.”