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For the fourth quarter, Amazon reported its revenues climbed 22 percent, but net income dropped 45 percent. The poor earnings didn't faze investors, who sent the company's stock higher following the release of the company's quarterly financial report.
Bloomberg BusinessWeek's Danielle Kucera reported, "Fourth-quarter sales climbed 22 percent to $21.3 billion, the Seattle-based company said yesterday in a statement. Analysts on average had projected $22.2 billion, according to data compiled by Bloomberg. Operating margin in North America widened to 5 percent from 2.9 percent a year earlier. Shares rose as much as 12 percent in extended trading."
InformationWeek's Charles Babcock added, "For 2012 as a whole, Amazon reported a loss of $39 million, compared to net income of $631 million in 2011. For the fourth quarter, net income was down 45% to $97 million from $177 million the year before."
Andrea Chang with the Los Angeles Times noted, "It was a good Christmas for Amazon's Kindle family. The company said that for the second year in a row, its tablet was the most popular item for customers, with the Kindle Fire HD the 'No. 1 bestselling, most gifted and most wished-for product' across the company's merchandise lineup. 'At year-end, Kindle Fire HD, Kindle Fire, Kindle Paperwhite and Kindle held the top four spots on the Amazon worldwide bestseller charts since launch,' the company said."
Peter Cohan with Forbes commented, "Amazon (AMZN) reports disappointing revenues and profits and its stock soars 10%. But when Apple (AAPL) meets revenue targets and beats profit forecasts, its shares plunge by 12%. Why does Wall Street seem to love Amazon, but flee Apple? Amazon’s low cost producer strategy is paying off; while Apple’s differentiation strategy is losing ground."