Amazon sees sharp share dip after 73pc decline in profits
Published 26/10/2011 | 08:30
A SHARP decline in profit has lead to an overnight share plunge at online retail giant Amazon.
Shares in the Seattle-based company fell 12.7pc after Amazon released its earnings for the quarter that ended on September 30.
It said net profit declined 73pc to $63m in the third quarter compared to the same quarter a year ago.
Amazon has sharply increased spending in the quarter as it invested in the Kindle Fire, a new rival to Apple's iPad, digital content and other projects.
Earnings per share of 14 cents were well below the 24 cents per share expected by Wall Street analysts.
Revenue was up 44pc to $10.88bn, slightly below the $10.93bn forecast by analysts.
Amazon said it expected revenue of between $16.45bn and $18.65bn in the current quarter, less than the average $18.10bn expected by analysts for the months which includes the key Christmas period.
Amazon unveiled three new Kindle e-readers and the Kindle Fire, its rival to Apple's hot-selling iPad, in late September.
The Kindle Fire is less than half the price of the cheapest iPad, and will start selling in the US on November 15.