Home > Brands > Amazon > Amazon Miss, Twitter Glitched, Intel Rebound

Amazon Miss, Twitter Glitched, Intel Rebound

A swath of earning reports have revealed some of the biggest tech companies have massively missed their targets due to investments and advertising issues, while another has managed to bounce back amid industry competition.

Amazon’s shares have, according to TechCrunch, fallen by nearly 7% following after-hours trading, missing its earnings for the first time in almost two years.

The online retailer had recently launched a one-day shipping program, investing $1.5 billion over the holiday quarter into Amazon Prime Subscribers, which investors predicted would impact operating income and sales.

However, according to Amazon CEO, Jeff Bezos, the company is willing to endure a little short-term pain to expand the company further.

“Customers love the transition of Prime from two days to one day — they’ve already ordered billions of items with free one-day delivery this year,” Bezos said in a statement.

Despite the share price drop, revenues for Amazon increased to $70 billion, above expectations of $68.8 billion.

Unfortunately, profits were down, reporting $2.1 billion, or $4.23 a share versus the $4.62 forecast by analysts.

According to MarketWatch, its the first time the company’s earnings have shrunk since 2017.

Amazon predicted net sales between $80 and $86.5 billion over the holiday season, with an operating income between $1.2 and $2.9 billion.

The company posted a significant decline in forecasts, with operating income sitting at $2.8 billion a year ago, supported by analyst forecasts for revenue numbers at $87 billion.

Considering the 100 million paid subscriber base for Amazon Prime, however, the company will retain performance through ‘the loyalty of its shoppers’, according to Neil Saunders, managing director of research firm GlobalData Retail.

Twitter, on the other hand, had a reportedly worse earnings release, plummeting by nearly 20% on the stock market.

Drowning in technical issues that have severely damaged its advertising, the social media company struggled to keep demand high over the summer.

Twitter CFO, Ned Segal, said despite the issues being within the control of the company, they were not able to do better to work through the bugs.

Despite that, revenues for Twitter rose by 9%, though unfortunately falling short of Wall Street estimates.

One area the company managed to exceed within was its total user count that sees advertising on its platform rising above analysts expectations.

“We drove strong growth in monetizable Daily Active Users, up 17% year-over-year, driven by ongoing product improvements,” said Twitter CEO Jack Dorsey in a statement.

Net income fell to $37 million from $789 million, with profits sitting at $106 million, which was well below the forecasted $161.5 million.

With total operating costs rising by 17% year-on-year to $780 million, analyst Craig Huber of Huber Research Partners is not expecting ‘a quick rebound’ for Twitter until 2020.

Fourth-quarter revenue expectations for Twitter sit between $940 million and $1.01 billion, compared to the optimistic Wall Street average of $1.06 billion.

Intel was one of the few companies to report some good news relating to their financial performance, reportedly hitting wall street targets for the third quarter.

As reported by VentureBeat, CEO Bob Swan characterised the report as “the best quarter in company history”.

Despite challenged from rival Advanced Micro Devices and US-China trade tensions, Intel has managed to stay afloat and push revenues by 6% to $19.2 billion.

It comes amidst a 5% drop in PC chip revenues, though fortunately, adjusted earnings per share hit $1.42 rising by 1%.

While analysts did expect $18.05 billion in sales, Intel did report a drop of 6%; however, this was in line with company expectations.

Intel is currently gearing up to return to the tablet market, according to ars Technica, with the company unveiling its new “Tremont” ultra-low-power 10nm CPU architecture.

The dual-screen Microsoft Surface Duo is set to be powered by the Tremont chips aiming to compete with ARM products like Snapdragon.

You may also like
Intel’s PC Market Crashes In Sept Quarter
After Hitting On OZ Government, Intel Now Looks To Get Billions Out Of EU
Facebook Mocked, Twitter Boss Calls It A Dictatorship
Giant Retailers Pledge the Impossible 
Amazon Allows Knock-offs – Depending On Who Is Being Knocked Off