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Market Update

Amazon Plunges 7% on Earnings Worries, Microsoft Soars 4%

Author: Nigel Thomas
Last Update: 12:11 PM ET October 24 2014

Amazon.com, Inc (AMZN) plunged 7.4% or $23.08 to $290.10 after the company reported larger than quarterly loss on the account of weaker than expected sales of its Fire phone.

Amazon posted 95 cents a share in the quarter compared to a loss of 9 cents in the quarter a year ago and revenues increased to $20.58 billion.

The online retailer also guided the crucial holiday period fourth quarter sales between $27.3 billion and $30.3 billion, lower than estimates set by Wall Street. The low end of the range was nearly $2 billion less than anticipated by analysts.

The company also said operating cash flow for the last four quarters totaled to $5.7 billion and the company remains in the “investment mode.”

Microsoft Corp (MSFT) increased 1.7% or 69 cents to $45.71 after the software developer and reported better-than-expected quarterly revenues.

Fiscal first-quarter sales increased to $23.2 billion and earnings increased to $5.84 billion or 54 cents per share compared to $5.2 billion or 62 cents a share in the year ago period.

Office 365 Home and Personal subscribers increased 25% from a year ago period to 7 million and the consumer division sales soared 47% to $10.96 billion.

Pandora Media Inc (P) plunged 14.3% or $3.31 to $19.84 after the online radio station services operator reported larger than estimated loss by analysts.

Proctor & Gamble Co (PG) advanced 3% or $2.53 to $85.74 and the consumer products maker reported in-line fiscal first quarter net and the company said it plans to exit its Duracell battery business.

RealPage, Inc (RP) soared 14% or $2.30 to $18.42 after the on demand software services provider for rental properties after the company received merger overtures from at least two private equity groups according to a report in Financial Times.

United Parcel Service, Inc (UPS) added 0.9% or 88 cents to $101.40 after the package delivery services provider reported earnings that were ahead of analysts’ estimates.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc