Amazon Is Proving Why It's a Buffett Stock
Amazon's (NASDAQ: AMZN) third-quarter report sent its stock tumbling on Thursday, October 27, after the company posted weak fourth-quarter guidance. The quarter itself was not too bad. Revenue increased 15% year over year, a strong showing in this economy, and smack in the middle of its guidance for 13% to 17%. Operating income of $2.5 billion came in on the high side of expectations, which were $0 to $3.5 billion. Amazon Web Services' (AWS) growth began to decelerate after many quarters of steady growth, which is a natural outgrowth of clients decreasing spending.
Management is guiding for revenue to increase by 2% to 8% in the fourth quarter. The fourth quarter includes the all-important holiday spending season, and analysts were expecting more, so this was disappointing.
But management isn't sweating. It has many plans in place to drive sales this season, and it's focused on the customer experience. Let's see why this is a Buffett stock and how that's playing out right now.
Source Fool.com
