Amazon Plunges on Earnings Miss (Update 1)

This story has been updated from 4:30 pm EST to include comments from the conference call about Amazon Prime.

NEW YORK (TheStreet) - Amazon (AMZN) shares plunged more 10% in after-hours trading after the giant e-retailer missed Wall Street estimates on profit and revenue for the final quarter of 2013. However, shares snapped back sharply after it said on its conference call it was considering upping the price for its two-day shipping service, Amazon Prime.

At last check, the stock was down 4.4% to $385.12, making the stock swing roughly $30 after the markets closed.

The Seattle-based company said it earned a profit of $239 million, or 51 cents a share, in the fourth quarter, up from $97 million, or 21 cents a share, in the year-earlier quarter. However consensus estimates were calling for earnings of 66 cents a share.


WATCH: Google Gets Pass on Earnings Miss, Amazon Gets Punished

Net sales increased 20% to $25.59 billion. Wall Street was expecting sales to rise 23% to $26.06 billion, according to Thomson Reuters. Excluding the $258 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 22% compared with fourth quarter 2012, the company said.

Operating income rose 26% to $510 million in the fourth quarter, compared with $405 million in fourth quarter of 2012.

Shares were falling 9.7% in post-markets trading to $363.78. The stock closed on Thursday up 4.9% to $403.01.

Amazon issued first-quarter net sales range between $18.2 billion and $19.9 billion, or to grow between 13% and 24%, compared with first quarter 2013.

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