Amazon shares fall on earnings miss

Amazon shares fall on earnings miss
In the third quarter NEW YORK-Amazon lost profits strongly Wall Street estimates, sending shares 17% lower in after-hours trading Tuesday.

Amazon earned $ 63 million in the quarter just ended, which represents a decrease of 73% over the same quarter last year. Earnings per share were 14 cents, well below the 24 cents per share forecast of analysts polled by Thomson Reuters.
Sales for the quarter ended September 30 was $ 10.9 billion, which was in line with analysts' estimates.

In a press conference after the earnings, Amazon CFO Tom Szkutak said the decline was reduced to spending revenue expansion: "We are investing in a large amount of capacity that's what we've been talking a lot in recent quarters. . "

Amazon plans to open 17 new stores, Szkutak said. The company has also been disbursed cash in other sectors: the line of new Kindle, your web hosting business, digital content and more.

Amazon (AMZN, Fortune 500) is focused on the positive in its earnings statement, talking about last month's revelation of four new Kindle - but did not provide any details beyond a vague statement that Kindle Fire presale tablet has been so strong that Amazon is the "construction of millions more than already planned."

Amazon has not disclosed sales figures for the Kindle line, which competes with other dedicated e-readers like the Barnes & Noble (BKS, Fortune 500) Nook, Sony (SNE) Reader and Kobo, as well as Apple (AAPL, Fortune 500) multipurpose iPad.

Company "throughout the world of electronics and other general merchandise" sales, which brings on the Kindle, increased 59% over the previous year, reaching U.S. $ 6.3 billion.
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Outlook: Amazon often provides an almost comically wide range estimate of revenue, and this time was no exception.

In the fourth quarter operating income is expected somewhere between a loss of $ 200 million and a gain of $ 250 million. Either way, Amazon is expecting a drop in revenue last year of operation of the fourth quarter of $ 474 million.

Net sales are expected to be between $ 16.45 billion and $ 18.65 billion. Analysts had expected a range of $ 16.88 billion and $ 19.2 billion.

Kindle fire: real iPhone rival Amazon, Kindle tablet fire, goes on sale November 15. The $ 199 device, which was introduced almost a month ago, has a 7 inch screen and runs on a highly customized version (GOOG, Fortune 500) operating system Google Android. The fire Kindle offers Wi-Fi, cellular connection but 3G or otherwise. It also lacks a camera and a microphone, two features found in most competing tablets.

Prices at just $ 199 tablet is not a network of Amazonas wide profit margin, but the company is willing to receive tablets in the hands of customers cheaper - and make money selling the content as e-books, applications, videos and files MP3.

Amazon hopes that its low price will attract more casual customers who are not willing to pay hundreds of dollars for an iPhone, Motorola (MMI) Xoom or Samsung Galaxy Tab.

Amazon also introduced a new line of Kindle e-reader in case of fire, the cheapest of which is a $ 79 ad-supported version of entry - another bargain that would attract more customers.

The classical orders Kindle electronic ink is double the last Kindle launch, Amazon CFO Szkutak said the analyst call.

Of course - to cling to the tradition of Amazon - did not mention any numbers.
Amazon shares fall on earnings miss