Well, I didn't buy any calls on Friday. I can't quite stomach the current premiums. Instead, I picked up some more of the stock at $23ish.
It was a lackluster weekend for sales, so it appears we're heading for 33-34 million items by the 21st, and approximately 45 million for the quarter.
At $25/item, revenues should come in around $1.15 billion, plus or minus .05B. Losses will likely be contained (on a pro forma basis of course) to $70 million or less (0.20/share). Take out the France and Japan operations, and it will be a near breakeven quarter
Don't forget that the ToysRUs deal will contribute handsomely to the bottom line, since AMZN is getting 5% profit on anything sold in that category, plus miscellaneous fixed fees. I'm not lowering the top line to allow for the fact that they aren't counting about 85% of the toy's revenue, because it will likely be offset by advertising payments, auctions, zshops, and a few creative accounting treatments.
Going against the stream,
Swimmy |
