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Amazon’s profit strongly decreased

The shares of the U.S. company Amazon collapsed by 9.4 per cent at the end of yesterday's session of the Stock Exchange in New York. The reason for this was information that the profit for the first quarter might be lower than analysts' expectations. The management forecast is that this quarter operating profit will be within the 260-385 million dollars, says a company release. When revenues are expected to 9.1 billion dollars. This is well below expectations for operating profit of 474 million dollars and revenue to 9.36 billion dollars projected by analysts. The surprising new result in massive sales and extended period of trading in New York shares of Amazon lost 17.3 dollars to 167.15 dollars per share. Thus growth was deleted from 5.1 per cent achieved in the framework of regular trading. The Amazon's profits for the last quarter of 2010 amounted to 416 million dollars, or 91 cents a share. This is 8 percent more than the result for the same period of 2009. The sales even increased by 36 percent to 12.9 billion dollars. The expectations were for earnings of 88 cents per share and revenue of $ 13 billion. The investors were disappointed by the contraction in operating margin to 3.7 per cent after the end of 2009 it was 5 percent.
The estimate of the heads of Amazon is that the first three months of this year operating margin will be between 2,8 and 3,8 per cent.