Business

Amazon.com feeling the impact of the financial crisis
by Zuzana Zelenakova

Considering the current financial situation on the markets Amazon.com, the world´s biggest online retailer launched on the Internet in 1995, is doing rather well. The compeny´s net income for the third quarter went up considerably, but still investors are not satisfied. Amazon.com reported the profit of $80 million, which is more than four times its income during the same period last year. But on the other hand, its shares fell $6.82, or 13.6 percent showing that one of the Internet giants is affected by the financial as anybody else. But "at the same time, they continue to grow much faster than overall e-commerce, so the platform does remain strong from that point of view," according to Lazard Capital Markets analyst Colin Sebastian. "I think the Amazon management team is generally more conservative than not, so I think they probably did contemplate certainly a bad scenario at the lower end. But that could end up being what it is if the consumer doesn't show up during November," said RBC Capital Markets analyst Stephen Ju. All in all, the quarterly report was all about good news. The company´s international businesses experienced strong growth, electronics and other merchandise grew 52 percent to $1.64 billion and there was also a jump in the sales of books, CDs and DVDs about 19 percent to $2.49 billion. During the period Amazon.com also launched a beta version of its online music store but refused to give financial information concerning this matter. The company announced that it expects full-year revenue of $18.46 billion to $19.46 billion, which is less than analysts were predicting. In July, Amazon itself had predicted the income for the year 2008 to be somewhere between $19.35 billion to $20.10 billion. With its vast product lines and strong position among the other Internet players Amazon is according to many “the best house on the block” even in the times of this financial storm.


related story: http://news.yahoo.com/s/ap/20081022/ap_on_hi_te/earns_amazon;_ylt=AtPmH7POP01wgF7eu_AWCtus0NUE

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

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posted by Blog TechSource @ 2:42 AM