Amazon’s Sales Miss Estimates, Profit Drops 57%

[marmar]

(Bloomberg) Amazon.com Inc. (AMZN), the world’s largest Internet retailer, missed analysts’ fourth-quarter revenue estimates and reported a 57 percent decline in profit, dragged down by shipping costs and the money-losing Kindle Fire.

Net income fell to $177 million, or 38 cents a share, from $416 million, or 91 cents, a year earlier, the Seattle-based company said today in a statement. Sales rose 35 percent to $17.4 billion, compared with an estimate of $18.3 billion.

Chief Executive Officer Jeff Bezos is squeezing profit margins in search of growth, looking to add customers by pushing free shipping and offering its Kindle devices at cut-rate prices. That has conditioned investors to expect strong sales increases, making the latest results disappointing, said Colin Gillis, an analyst at BGC Partners LP in New York.

“To miss on the top line, that’s what breaks the momentum,” said Gillis, who recommends selling Amazon stock. “The bull case just breaks down.” ...............(more)

The complete piece is at: http://www.bloomberg.com/news/2012-01-31/amazon-s-sales-miss-estimates-profit-drops-as-expenses-surge-shares-drop.html

[Warpy]

1. It's probably got something to do with Kindle, come to think of it.

I know I have an Amazon box coming in every other month or so, so I'm doing my bit to keep them afloat.

[JI7]

2. everyone i know who gets Kindle likes it but the only get it to read

maybe they should stick to that area.

[Warpy]

5. The display is too damned small for me

A text reader came with my computer but the selection is a bit limited at present. I like it much better because a 23" screen will be a lot easier to read.

[SharonAnn]

6. the 23" screen is certainly less portable.

And I like the ability of the Kindle to enlarge the type size when my eyes are tired.

[Warpy]

10. Portable is something I really don't need

Now if they enlarge the Kindle Fire one of these days to more than a quarter of a page, I might like it for magazines. Reading and viewing illustrations with a magnifying glass doesn't appeal to me.

[RKP5637]

4. Yep, about the same here. I use Amazon a fair amount. I like the reviews and

also contribute to the reviews of stuff.

[MisterP]

3. we get our dish soap from Amazon and our books from ISBN.nu. Go figure

[seeviewonder]

7. Just bought a Kindle Fire for my young daughter's birthday.

We've only had it a few days and already knows how to use it better than me!

[Odin2005]

8. I don't understand why its so horrible that profits don't always go up.

[eShirl]

9. I think they're selling the Kindle Fire tablet at a slight loss