Other noteworthy trends include a 21% jump is U.S. media sales to $4.15 billion. The company also said it is adding 17 new fulfillment cents in 2011, compared with its prior plan of 15.
"We note that Amazon has been through various reinvestment cycles in the past, which have dampened near-term margins," Credit Suisse analyst Spencer Wang wrote in a note. "However, given the attractive growth prospects and the high ROIC characteristics of Amazon's business model, we think this is the right long-term investment decision. Ultimately, we believe value creation is driven by increasing profit dollars as opposed to profit margins. Amazon has employed this strategy in the past to much success."
Amazon is typically tight-lipped during its conference calls and last night was no different. Chief Financial Officer Tom Szkutak drove home Amazon's message about "lifetime value."
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