Lacklustre trading data from Amazon has prompted a Wall Street sell-off with the retailer's share price dipping by as much as 10% at one point.
Amazon posted a net profit of $239 million (£145 million) for the three months to December-end, up from $97 million noted over the same period a year ago. Nonetheless, group revenue came in below median market estimates of $26 billion at $25.59 billion.
A spot poll of five stock traders and three analysts by CIO UK found a majority opining that the share price was under pressure simply because the market expects Amazon to deliver better income.
The company's stated profit for the period of $239 million equates to $0.51 per share and is an improvement on the $0.21 seen over the same quarter in 2012. However, according to one trader this was still short by "at least $0.20-25".
Another said: "Amazon is known for running a tight ship and doing the basic things right. It is all well and good putting trial delivery drones in the air, but C-suites at the company must ask – are we getting the basic income stream right? If they don't ask the question, the market will – as its doing right now."
That said, most of those polled by CIO UK agreed that the company is not in a bad shape. In fact, Amazon reported a 22% rise in full-year sales to $74.45 billion for 2013, versus $61.09 billion the year before.
For the current quarter, Amazon is forecasting revenue of $18.2 billion and $19.9 billion. The upper end, if achieved is above the median market forecast of $19.6 billion. The retailer's stock price is currently trading in $370 region; down 8.1% in Friday's trade.