Amazon had a disaster earnings report. It seems my two worst stocks of the year which were Amazon and Boston Beer were both good calls. Amazon reported earnings of $1 per share which missed estimates by 56 cents. Amazon web services, which were a bright spot, grew 69% year over year. The chart below shows the growth in revenue in this division. Amazon saw 3 million new Prime subscribers and doubled its device sales. The big question for Amazon has always been profitability. Profits have been delayed as the firm grows its market share in retail, web services, and device sales. Now that profits are expected to start coming, Amazon is having a difficult time delivering. It is easy to spend money to create revenue growth. It is much more difficult to deliver profits. This isn't a new discussion. This discussion has been going on for over 10 years. Amazon is not like most growth companies. Most growth firms grow profits over time. Amazon decided to spend an inordinate amount of money to grow super quickly. Part of this decision was fueled by the support of Wall Street. If Amazon stock was at $100 per share, there would be less volatility in the stock price today. Reality appears to have reared its ugly head today. I am short Amazon and long Facebook. Basically money shifted in my portfolio with no meaningful gains or losses. Amazon may bring the market down tomorrow just like how Facebook brought it up today.