Are Investors Losing Patience With Amazon?

Before you go, we thought you'd like these...
Before you go close icon

On Friday's installment of Investor Beat, host Alison Southwick and Motley Fool Million Dollar Portfolio lead advisor Ron Gross take a look at some of the biggest blockbuster stories from this earnings season, to see who popped, and who dropped.

Although Amazon was able to increase sales by 20% year over year this quarter, to $25.6 billion, analysts wanted to see $26 billion, and the stock sold off 10% as a result. Amazon has missed analysts' estimates before, but the market is generally much more forgiving than this. Could investors be getting tired of Amazon's old excuse, that the reason we don't see soaring profits with this company is because it is eternally reinvesting in its future? In this segment, Ron discusses why the old excuse still holds true, and why this is truly a stock for long-term investors, not for those who need to see profits today.

Will Amazon bring about the end of brick-and-mortar retail?
To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform, and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.

The article Are Investors Losing Patience With Amazon? originally appeared on

Alison Southwick has no position in any stocks mentioned. Ron Gross has no position in any stocks mentioned. The Motley Fool recommends The Motley Fool owns shares of Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading