Amazon beats Wall Street estimates in fourth

[RamboLiberal]

Source: MSNBC/AP

Amazon.com Inc. said Thursday that its fourth-quarter profit rose 9 percent and easily surpassed analysts' forecasts. Those results, plus an optimistic forecast, sent its shares soaring 13 percent in extended trading.

Amazon had called the holiday season its "best ever," and the earnings report backed up the idea that the online retailer is not being seriously hurt by cutbacks in consumer spending. Amazon said its revenue in the current quarter should be between $4.53 billion and $4.93 billion, while analysts are expecting $4.57 billion.

Shares of the Seattle-based company shot up $6.39, or 12.8 percent, to $56.39 in after-hours trading. The stock had fallen 36 cents to finish regular trading at $50.

Amazon said its profit in the fourth quarter was $225 million, or 52 cents per share. Analysts, on average, had been expecting 39 cents per share, according to Thomson Reuters.

Read more: http://www.msnbc.msn.com/id/28919297/

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I know some of you don't like Amazon, but I think they have a great business model. I like that I can find older books, DVDs, CDs, etc from other merchants than Amazon on their site at a very good savings. And that when done with media I can resell it on their site. I also find many other items beyond media on their site either from Amazon or one of their merchants and again usually at a competitive price.

I also like their user reviews. I buy a lot of software books and the reviews from peers greatly help me in selecting the book I need.

[xchrom]

1. i hate amazon -- but i'm glad to see any business do well.

but i'll never shop there.

[Doctor Cynic]

2. Perhaps everyone is desperate to sell everything they could sell...

[silver10]

3. I love Amazon, too!

I go there at least once a day, and purchase out-of-print books, and read book reviews which are many times educational and helpful. I do feel guilty that they have probably put potentially tens of thousands of smaller book shops out of business, though. Kind of like the Wal-Mart of books, except more technical. However, you are right, it is a great model and it works - not as much overhead as with bricks-and-mortar, and with the volume, Amazon almost always has the cheapest book price.

[RamboLiberal]

4. Actually I think they are helping the wise small book sellers

Just look at the number of independent sellers they have when you click on "New & Used". If you are a small bookstore you should be listing on Amazon as well as having books on your shelf for the locals. I think selling on Amazon can help keep the little booksellers open.

[silver10]

5. Excellent point

I never really thought of, thanks.

[wickerwoman]

6. I think there's room for both Amazon and small booksellers too.

I go on Amazon when I'm looking for something specific that I have to have soon (like cheap textbooks) but I go to my local bookstore when I just want to browse and see what grabs me. I still buy 60-70% of my books from the shop because I'm too impatient to wait three or four days to get the sequel to a book I'm reading or just in impulse purchases.

We had a massive, freak snowstorm here for the whole ten days before Christmas and like almost everyone else we ordered everything through Amazon (at 50-75% off we saved hundred of dollars and didn't have to brave the icy streets for stores that were mostly closed anyway).

[BumRushDaShow]

7. Not just books

but I have purchased a number of items that came from small businesses listed with Amazon that had the item I wanted in stock but were usually not located locally. So the small brick and mortar business can actually expand it's customers beyond it's location.

[nyy1998]

8. Yeah I love shopping at Amazon too.

Amazing selection of books, dvds, games, etc. And I have plenty of friends operating small businesses on Amazon.com. It's basically an online flea market. Couldn't agree more with what you said about the business model. Absolutely genius! :)

[closeupready]

9. I have always liked Amazon actually, so this is good to hear.

They have everything, I've ordered electronics, books, appliances, clothing, streaming movies - they have it all.

[stray cat]

10. I buy most things from Amazon now rather than driving 30 miles to get something