After months of run-up, and a big, 9% move today, the pressure was on Amazon to beat, and beat big. The company did beat. The 19 cents was a penny better than the Street expected. And revenue also came in a little stronger than expected.
And therein lies the problem. "A little stronger" hardly justifies a stock that's tripled this past year. Guidance seemed strong going into the fourth quarter, where Amazon sees so much business because of holiday shopping.
And while the mid-point of operating income guidance moved a little higher, the high-end came down quite a bit.
Say it with me: ho hum. Which is unfortunate. A classic case of good simply not being good enough. Sell on the news. Profit-taking. Call it what you will; just don't call it an Amazon rally.