By Bob Freedland
Amazon (NASDAQ:AMZN) disappointed on its Q3 earnings report earlier this week, as EPS dropped 73% from last quarter, and management mentioned the possibility of a loss the upcoming quarter. Some of the tech geniuses had already dissected the new Kindle Fire and suggested that AMZN was losing $50 on each device.
Lost in this announcement was the fact that Amazon’s quarterly revenue climbed 44% year over year, to $10.88 billion. In fact, it has been recently suggested that the Kindle Fire might outsell the iPad 2 this year.
Clearly Amazon may have the best shot at unseating another favorite of mine, Apple (NASDAQ:AAPL) from its leading position in tablet computers. Maybe they are trying the Polaroid or Kodak method of selling cameras cheaply and trying to make money selling consumers the film. But we know how that worked out for Kodak and for Polaroid .
While long-term I am bullish about the prospects for Amazon, short-term I am less optimistic and shall be looking to exit my position.
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