Amazon Profit Not Enough to Drive Stock
NEW YORK (
) --
Amazon
(AMZN) - Get Report
is falling in Thursday's after-market trading despite beating both profit and revenue forecasts.
During the quarter, the Internet retailer earned $299 million, or 66 cents a share, on revenue of $7.13 billion, topping Wall Street's expectations of 61 cents a share and revenue of $6.87 billion.
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In keeping with the trend of eBay, Amazon also released a somewhat disappointing outlook, sending shares tumbling 3.9% to $144.58 in after-hours trading.
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Kindle's selection of titles reached 500,000. Investors have been worried that
Apple's
(AAPL) - Get Report
launch of its iPad will steal market share away from the e-reader.
Amazon forecast second-quarter sales between $6.1 billion and $6.7 billion, which could miss analysts prediction of $6.4 billion. Operating income is expected to fall between $220 million and $320 million, which implies operating margin in the range of 3.6% and 4.8%. Wall Street was calling for margins of 5.1%.
-- Reported by Jeanine Poggi in New York.
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