Internet retailing giant Amazon.com Inc. disappointed investors with a fourth quarter earnings report that missed Wall Street’s revenue expectations and showed the company continues to make heavy investments in areas such as technology and marketing.
The results, released after the markets closed on Thursday, sent shares tumbling more than 8 percent, in after-hours trading. Amazon.com shares had fallen $1.24, or 2.8 per cent, to close at $42.74 in regular trading Thursday on the Nasdaq Stock Market.
"Investing in their business in order to put in place an infrastructure of the Amazon of tomorrow is becoming, increasingly, an expensive proposition," said analyst David Garrity with Investec. "And it becomes painful, if you will, for investors to wait for that to happen." For the three months ended December 31, Amazon.com said it earned $199 million, or 47 cents per share, compared with $347 million, or 82 cents per share in the last three months of 2004. The Seattle-based company said the most recent results included a one-time tax benefit of $38 million. In the last three months of 2004, Amazon.com said it recorded a $239 million one-time tax gain.
The results, released after the markets closed on Thursday, sent shares tumbling more than 8 percent, in after-hours trading. Amazon.com shares had fallen $1.24, or 2.8 per cent, to close at $42.74 in regular trading Thursday on the Nasdaq Stock Market.
"Investing in their business in order to put in place an infrastructure of the Amazon of tomorrow is becoming, increasingly, an expensive proposition," said analyst David Garrity with Investec. "And it becomes painful, if you will, for investors to wait for that to happen." For the three months ended December 31, Amazon.com said it earned $199 million, or 47 cents per share, compared with $347 million, or 82 cents per share in the last three months of 2004. The Seattle-based company said the most recent results included a one-time tax benefit of $38 million. In the last three months of 2004, Amazon.com said it recorded a $239 million one-time tax gain.