Amazon Net Income Dropped In Fourth Quarter, Stock Down
Amazon released their fourth quarter results today and, well, it’s easy to see why they waited to announce the news until the day was about over. The e-commerce company’s net income dropped despite revenue increasing.
The company has been expanding and growing which is one of the reasons for the dip. With that said though, they’re still not doing too bad and remain the most popular and flocked to e-commerce site on the planet.
Sales of the Kindle Fire have been very impressive and is carving a nice place for itself in the tablet market. Whether it can keep up with the iPad and the soon to be released iPad 3, that’s another story.
“Seattle-based Amazon.com Inc. said Tuesday that its net income was $177 million, or 38 cents per share, in the three months that ended Dec. 31. That’s down 57 percent from $416 million, or 91 cents per share, a year earlier. Revenue grew 35 percent to $17.4 billion. Though it was buoyed by solid holiday sales, the figure fell below the $18.3 billion that analysts polled by FactSet had expected.”
“Amazon’s operating expenses, meanwhile, grew 38 percent to $17.2 billion. The company has been investing heavily in new sales-fulfillment centers so it can grow its business. That has cut into profits all of last year.”
For this quarter, they’re estimating anywhere from $12 Billion to 13.4 Billion in revenue. They also may suffer an operating loss this quarter as well. As with any company that expands, losses are to be had. It’s also said that they’re losing money on each Kindle Fire sold which, even with that the case, they’ll make money back in the long term due to purchases of digital products that earns them 30% of all profits.
How often do you shop at Amazon?