Markets Rally on Strong Earnings (AMZN, F)
Major indices surprised investors by going up today, in spite of new data from the Commerce Department showing that GDP growth slowed to 2.2 percent in Q1, from 3 percent in Q4 2011. This was attributed primarily to strong market responses to several corporate earnings calls, such as Amazon's (AMZN), who saw a 34 percent increase in revenue year over year, though net income declined slightly. Part of this is due to the success of their Kindle Fire product in the market, which they are selling at cost. A ComScore (SCOR) report came out indicating that the Kindle Fire had 54 percent of the Android tablet market, or approximately 25 percent of the overall tablet market.In less positive news, Ford (F) saw its net income fall by 45 percent in Q1.
Word on the Street
- In spite of weak economic data, major indices were mostly up today.
- GDP growth slowed down in Q1.
- Is government spending to blame for our poor economic performance?
- Amazon (AMZN) saw its revenue jump by 34 percent year over year.
- The Kindle Fire is reported to have over half of the Android tablet market.
- Ford (F) took a hit in Q1.
Published on Apr 27, 2012By InvestorGuide Staff