Updated from 4:23 p.m. EDT
topped Wall Street's top- and bottom-line expectations, but investors took profits in extended trading after bidding the stock to a 52-week high in the regular session.
The selling continued Wednesday morning, as Amazon fell $9.82 to $91. Its fast friends in the tech momentum crowd,
Research in Motion
( RIMM), were down between 1% and 2% early Wednesday after each touched a new high in regular trading Wednesday.
Amazon, an online retailer, said net income increased 313% to $80 million or 19 cents a share, compared with net income of $19 million, or 5 cents a share, a year earlier.
Sales increased 41% to $3.26 billion in the third quarter, compared with $2.31 billion in third quarter 2006. Excluding the $75 million favorable impact from year-over-year changes in foreign-exchange rates throughout the quarter, net sales grew 38% compared with third quarter 2006.
For the quarter, analysts surveyed by Thomson Financial had expected the company to earn 18 cents a share on revenue of $3.14 billion.
The company's closely watched operating margin came in at 3.8%, compared with 1.7% for the same period a year ago. Still, that's down from 4% from the second quarter and 4.8% from the first quarter.
Amazon spent $209 million on technology and content, or 6.4% of net sales. That compares to $172 million, or 7.5% of net sales, for the same period a year ago.
The decreased spending as a percentage of sales on technology and content indicated that the company "continues to grow into our new level of spending," Amazon CFO Tom Szkutak said in a conference call for investors.
For the fourth quarter, the company said it expects net sales between $5.1 billion and $5.45 billion.
Analysts had forecast earnings of 46 cents a share on revenue of $5.12 billion.