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Amazon Announces Sharp Drop in Profits -- Finspreads

LONDON -- (Marketwire) -- 01/30/13 -- Finspreads: Online retail giant Amazon has announced a sharp fall in profits in its latest quarterly figures.

Net income for the last three months of 2012 stood at $97 million (£61.5 million), a sharp drop compared to the $177 million figure notched up during the same period in 2011.

The retreat in profits came despite an increase in revenue, which was up 22 per cent from $17.43 billion to $21.27 billion.

Jeff Bezos, founder and chief executive, says the figures are a cause for optimism.

He said: "We're now seeing the transition we've been expecting.

"After five years, e-books is a multi-billion dollar category for us and growing fast -- up approximately 70 per cent last year."

Amazon's shares on the Nasdaq slipped during trading yesterday January (29th), falling by 5.68 per cent.

But investors seemed to show more faith in the company during after-hours trading, with Amazon's shares shooting up by 8.91 per cent.

Some analysts have attributed the company's rise after the bell to its 56 per cent increase in operating revenue, which some claim has increased the level of confidence amongst investors.

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The Finspreads App for iPhone and iPod touch is our highly intuitive trading App that is designed to help you access your spread betting account no matter where you are and at any time of the day.

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