According to Reuters Amazon.com Inc’s once fairy-tale ride on Wall Street has hit its most jarring bump yet. The company that for years enthralled investors with improbable growth and earned one of the technology sector’s highest valuations drew widespread ire after a spectacular results letdown on Thursday.
Amazon missed expectations across the board – on margins, on its net loss and on revenue. An unaccountably poor 7 to 18 percent revenue growth forecast for the typically strongest holiday quarter was the final straw for some. Coming just three months after a big letdown in July, the warning may represent a tipping point for investors who are already wary of a triple-digit price-earnings ratio and a persistent unwillingness to throttle back spending. Perhaps from now on Wall Street may treat Amazon as a retail (Mail Order), rather than a high tech business.