Last night, things went bad to worse when it came to Amazon and Pandora’s stock. The two companies reported news to investors last night that quickly convinced them to stop trading Amazon and Pandora, allowing both the stocks to fall 11% and 13%, respectively. After hours trading on the stock market was influenced by the results of the earnings that both companies reported for Quarter 2 of the 2014 fiscal year.
As for Pandora, the internet music streaming website, the world of investors has not been too favorable on Pandora’s side. The fluctuations in Pandora’s stock price, along with mixed investor reviews, shows that Pandora is a bit risky investment yet a great product nonetheless. Shown by their 52 week report, they have performed extremely well with a 54.49% change. Yet, the question remains, will they survive? The earnings from last night dropped the company’s stock price to around $24 and as lunch time arrives, it doesn’t seem to stop. As investors analyze the earnings report from last night, we will see whether this company will survive or tank like a submarine diving into the abyss.
Despite strong sales growth for the ambitious and revolutionizing online shopping company, this stock has seemed to fall following Pandora’s steps. Amazon reported a 23% increase in sales and revenue this quarter but is offset by their 24% increase in expenses. This shook up investors and the stock fell 11% today to $318, a sharp decline for Amazon. This company is based on providing the consumer with fast and easy ways to buy whatever they want, whenever they want. Using Amazon’s fulfillment centers, customers can quickly order their products and have it delivered to them within a week. Amazon is known as the biggest online shopping website in the world and has great ideas like Amazon Fresh, which is a same day and early morning grocery delivering service sponsored by Amazon. This allows customers to get groceries without leaving their house. Another ambitious idea was the Amazon Prime Air, a drone delivery service in the making. Amazon Prime Air was introduced by Amazon’s CEO, Jeff Bezos, a couple months ago and introduces a next generation delivery system where Amazon sends drones into the air and drops packages off in 30 minutes or less. Quite the idea, right?
Nevertheless, last night and today’s trading days don’t look so good for Pandora and Amazon. Hopefully both companies will find ways to rebound from this and possibly release new products and services that will benefit both the company and the consumer looking for a new product to buy. As for now, we will just have to wait.
“Amazon Prime Air.” Amazon Prime Air. N.p., n.d. Web. 25 July 2014. <http://www.amazon.com/b?node=8037720011>.
“Amazon Reports Loss.” The Wall Street Journal. Dow Jones & Company, n.d. Web. 24 July 2014. <http://online.wsj.com/articles/amazon-reports-another-loss-despite-strong-sales-growth-1406233529>.
“Pandora Investor Relations.” Pandora. N.p., n.d. Web. 25 July 2014. <http://investor.pandora.com/phoenix.zhtml?c=227956&p=irol-news&nyo=0>.
“Pandora Key Stats.” Finance.Yahoo.Com. N.p., n.d. Web. 25 July 2014. <http://finance.yahoo.com/q/ks?s=P+Key+Statistics>.