Financial News

  • 1 February 2014, 1:51

Amazon Shares Slide Despite Profit Rise

Online retail giant Amazon has seen its value drop after crucial Christmas trading failed to meet expectations.

The Seattle-based firm said it made 145m in the three months to the end of December, up from 58m the previous year.

But the figure did not encourage the investors, and shares slid 10% in after-hours trading.

Amazon said its sales rose by a fifth to 15.5bn in the period, although analysts expected it to be higher.

Its forecast for the current quarter is also below analysts' expectations.

The company does not give a breakdown for its UK or European units.

Amazon has long focused on ploughing money into business expansion, including streaming videos to e-readers and grocery delivery in some areas, but the market has shown a shifting mood.

Investors have previously ignored its low profit margins and instead watched revenue growth and long-term potential.

The company posted losses in the previous half-year however its share price still hit a record high of around 250 last week.

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