Amazon grew 36% but disappoints investors
Amazon have announced their latest performance figures to Wall Street, but despite a 36% rise in revenues with profits up around 8% their shares took a 9.9% dip in after hours trading.
Despite sales which rose about $10bn for the first time, (smashing through the barrier to $12.95bn), the 36% increase was a disappointment to analysts who had predicted a higher figure.
The drop in the share price could also be due to Amazon expecting earnings to drop this quarter due to investment in technology. Amazon are also on the acquisition trail with Diapers.com and LOVEFiLM added to the Amazon portfolio as well as building new distribution centres one of which will be in Scotland.
Kindles are doing well on Amazon, excluding free books for every 100 paperbacks they sold they 115 eBooks. Sales of eBooks had already surpassed sales of hard back books by July 2010. The future of publishing is definitely moving towards electronic rather than print versions.
Amazon have opened up the Kindle to more platforms including mobile handsets so you no longer even have to have a Kindle reader with you to access your library. The Kindle was Amazon’s best selling product for the last quarter followed by the Toy Story 3 DVD.