Drop in earnings no problem for Amazon

Posted by & filed under Part 1 Business in a Global Environment, Part 4: Marketing Management, Part 6 Managing Financial Resources.

Description:  Amazon may sacrifice some profits as it invests, but investors focus more on the big sales increase and a solid outlook.

Source: CNNMoney.com – video report

Date: 07/27/2011

Link:  http://money.cnn.com/video/markets/2011/07/27/mkts_am_amazon_0727.cnnmoney/
Questions for discussion:  

  • Summarize the reasons for the jump in share value even though earnings fell?
  • What does this report suggest about the connection between earnings, management spending decisions, and share values?

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