Amazon.com Inc shares plunge as holiday-period revenue misses analyst estimates – FINANCIAL NEWS-ecozik.com
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Amazon.com Inc shares plunge as holiday-period revenue misses analyst estimates

Amazon.com Inc. on Thursday reported fourth-quarter earnings of US$482 million.

Amazon.com Inc.’s holiday quarter profit and sales missed estimates, using the shine from annually marked by record earnings as well as an growth of the business’s businesses. The internet retailer’s shares fell 15 per cent.

Fourth-quarter net gain was US$482 million, or US$1 a share, on revenue that rose 22 percent to US$35.7 billion within the fourth quarter, Amazon said in a statement Thursday. That fell lacking analysts’ average projection for profit of US$742.9 million, or US$1.55, on sales of US$35.9 billion, according to data compiled by Bloomberg. The stronger dollar weighed on revenue, shaving US$1.2 billion in the quarter.

The result was a surprise for investors who have become familiar with Amazon’s ability to boost sales by spending heavily on delivery infrastructure and new products. The key question is whether the Seattle-based company can readjust its investments in the face of weaker than anticipated sales. Still, Chief Executive Officer Jeff Bezos appears going to reveal that Amazon can keep bringing in more profit and sales – he retracted on spending last year to provide a surprise begin earnings and will be showing Amazon’s first Super Bowl commercial in a few days.

“When revenue goes up by more than US$6 billion how are earnings only going up by 55 cents?” said Michael Pachter, an analyst at Wedbush Securities Inc. “That’s what investors are wondering at this time.”

Amazon’s shares, which more than doubled this past year, fell as much as 15 per cent in extended trading. The stock advanced 8.9 per cent to US$635.35 at the close in New York.

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