What investors were looking for was for spending to go lower. But at least costs didn't go up even further.
Everyone expects them to make a profit on operations, but if they can make more than $10 million from operations, it shows they are making some good improvements in the margin as well.
It makes sense. It's an orderly way of increasing the flow and reducing the volatility in the stock.
We believe Yahoo!'s stock has significant upside in it, given its inflection point in revenue and margin growth, Yahoo!'s increasing market share and the conservative guidance.
While this may be a slower increase than we saw in 2005, this takes Amazon further away, not closer, to its goal of double-digit margins.
It just shows the strength of their non-advertising revenue.
Obviously, it will mean a wider ownership of the stock and potentially lower volatility. We've seen that with other stocks that have been in the S&P 500.
It was a very strong performance. I would expect them to have a nice upside.
The second quarter got our hopes higher for margins, which came in significantly lower than we were expecting,
For some reason, people had their hopes much higher than this, especially for the guidance. Everything seems to be in line.
