Online retail giant Amazon sees share price tumble

Despite posting profits of £144.9m, Amazon saw its share price fall after results missed expectations and with modest revenue forecast

Chris Radburn/PA Wire Amazon fulfilment centre in Peterborough
Amazon fulfilment centre in Peterborough

Online retail giant Amazon saw its share price tumble after releasing its fourth-quarter results, despite posting profits of US$239m (£144.9m).

Profits for the quarter jumped from US$97m (£58.8m) for the same quarter in 2012.

The US firm’s figures also showed a 20% increase in sales of US$25.59bn (£15.53bn) for the quarter to December 31, 2013, up from US$21.27bn (£12.9bn) for the same period the previous year.

But the results missed expectations, and with modest revenue forecast for the current quarter, shares dipped 10% in after-hours trading.

The company is predicting net sales of between US$18.2bn (£11.04bn) and US$19.9bn (£12.07bn) in the first three months of 2014, a growth of between 13% and 24% compared with the first quarter of 2013.

Amazon saw a increase in sales for the whole of 2013 of 22% to US$74.45bn dollars (£45.17bn), up from US$61.09bn dollars (£37.06bn) in 2012.

Despite the share blip, Jeff Bezos, Amazon’s founder and chief executive, said now was “a good time to be an Amazon customer”, highlighting increased support for Kindle customers and the new service of Sunday deliveries.

Amazon’s UK arm saw its biggest ever day of sales on December 2, the so-called “cyber Monday”, when 4.1 million items were ordered, at a rate of 47 items a second.

That eclipsed the previous busiest day set just four days earlier, on November 29, when 4 million items were ordered.

Journalists

David Whetstone
Culture Editor
Graeme Whitfield
Business Editor
Mark Douglas
Newcastle United Editor
Stuart Rayner
Sports Writer