Thursday, January 29, 2015

Quarterly figures: Amazon’s stock is rising despite less profit – Reuters

Quarterly figures: Amazon's stock is rising despite less profit – Reuters


Two Amazon packets: The online giant thrilled stockbrokers despite the decrease in profits

(Photo: Reuters).

Seattle The World’s Largest Online retailer Amazon has indeed earned last Christmas shopping less, the stockbrokers with the black but still enthusiastic. The profit fell year on year by ten percent to 214 million dollars. Earnings were still well above expectations of analysts who had expected less than half as much. The stock jumped on Thursday after trading therefore around twelve percent higher.

Investors also did not mind that sales with an increase of 15 per cent to $ 29.33 billion fell short of market forecasts.

In the previous quarter, inter alia, a write-down was rained out on the first flopped Amazon smartphone Fire Phone the balance sheet. The result was a loss of 437 million dollars, shocked the investors.

Amazon traditionally invests heavily in expanding the business and therefore at best drives a narrow profit. So $ 1.3 billion were put into the house video streaming service last year alone, such as Amazon’s CEO and founder Jeff Bezos said.

For the shipping costs in the subscription service Amazon Prime’ve spent billions. Prime customers do not pay any shipping charges and get access to selected music and video content. Analysts debate whether Amazon’s costs for the Prime program are too high. Amazon points out that Prime customers bring more sales.

The Group does not mention exact number of Prime members. Bezos was now only known that they had increased by 53 per cent last year – on a base of tens of millions.

Throughout the year there after the lousy third quarter despite the black figures out the year a loss of 241 million dollars. 2013 Amazon had been completed with a profit of 274 million dollars.

The forecast for the current quarter was muted. Amazon expects operating earnings between a loss of $ 450 million and a profit of $ 50 million.

Amazon is in addition to the retail business one of the world’s largest providers of cloud infrastructure. Also this business requires high investments, such as in data centers. The investors have hardly got insight into the development of this Amazon region. Now continue to the turnover of the cloud business are reported separately. In addition, it was said that the division had a million customers.


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