Shares Surge As Amazon.com Income Up 68 Pct In 3Q

RACHEL METZ

SAN FRANCISCO (AP) — Amazon.com Inc.'s shares surged Friday after the company reported third-quarter results that showed consumers comfortable opening their wallets to the online retailer despite the still-shaky economy.

Thursday's report blew past analysts' expectations, and Amazon predicted more than 20 percent growth in the current quarter. In afternoon trading, shares rose $23.12, or 24 percent, to $116.57, well past the 52-week high of $97.82.

Throughout the recession, shoppers have flocked to Amazon for deals on all kinds of products, from books to baby strollers, even while offline competitors were struggling.

The most recent report shows that the summer months were no exception — and that Amazon expects to carry the momentum through the holidays. It said it expects revenue in the current quarter to grow between 21 percent and 36 percent.

During a conference call with reporters Thursday, Chief Financial Officer Tom Szkutak said consumers are continuing to spend at Amazon because of its low prices and large selection.

"That's certainly helping growth," he said.