Earnings: Amazon Wins New Friends

Amazon.com may have won new friends on Wall Street after posting a better-than-expected third quarter. The company expects to have record holiday sales.
Net income was $19 million, or 5 cents a share, down 37 percent from $30 million, or 7 cents. Sales rose 24 percent to $2.31 billion. Wall Street analysts had expected profit of 3 cents on sales of $2.25 billion. Sales of the largest Internet retailer soared in after-hours trading, rising $3.67, or 11 percent, to $37.30.
In the earnings release, CEO Jeff Bezos said in the press relesae the company expects to see continued improvement in operating leverage in the current quarter as its investments in new intiatiatives including Web services and digital media. Wall Street analysts have been skeptical about whether Amazon’s new digital video download service Unbox will be successful given the huge amount of competition in the market.
In other matters, Amazon rebuffed efforts by Google to get information about its book search. The search engine giant wants the information to fight against a lawsuit that authors and publishers have brought against it regarding the feature, according to MarketWatch.
Earnings|Webcast

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