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MarketFoolery

MarketFoolery: 10.26.2011

MarketFoolery

The Motley Fool

Money, Business, Motley, Business News, Stocks, News, Investing, Market, Fool

4.71.7K Ratings

🗓️ 26 October 2011

⏱️ 19 minutes

🧾️ Download transcript

Summary

Shares of Amazon drop after the company reports a decline in quarterly profits. Shares of Ford slide despite big quarterly sales. And shares of Tupperware tumble despite strong sales in emerging markets.

Transcript

Click on a timestamp to play from that location

0:00.0

It's Wednesday, October 26th, and this is Market Fullry.

0:05.7

I'm Chris Helen joining me in studio today from Motleyville Inside Value Joe

0:08.8

Meager, from Motley Full Stock Advisor, Jason Moser and from Motley Fool Pro, Jeff Fisher.

0:14.0

Guys, thanks for being here.

0:15.0

Hello, hello.

0:16.0

We've got earnings from Ford and Tupperware, a couple of listener emails,

0:20.0

but first, Amazon's third quarter profit down 73% and shares are falling this morning.

0:27.0

Joe Meager, lot to get into here.

0:30.0

Sales were up, but so were expenses.

0:32.0

What's your take on Amazon's quarter I think

0:34.8

it was great contrary to what analysts think and this is a classic example of

0:39.0

Wall Street once again punishing Amazon for investing for its future. Right now

0:45.1

they're building out you know capabilities on distribution and people are

0:49.2

worried about low margins on the new Kindle's're selling, but these are just classic razor

0:53.9

razor blade models where the Kindle is the razor and they're happy to sell it to

0:58.0

you basically at a cut rate price, where they're going to make all their money

1:01.4

on the back end selling the razor blades being the books.

1:04.4

And now that they've got the fire that's a little more broad in terms of what it offers,

1:10.0

so before you know it you'll be purchasing all sorts of things on Amazon through the Kindle Fire.

1:15.3

You know to me it's it's a great little model and I think the market's punishing them in the wrong way.

1:20.1

Jason what do you think?

1:21.1

Joe is right on the money there.

...

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