Amazon.com (NASDAQ: AMZN) shares immediately dropped nearly 10% as it release earnings for its most recent quarter. Margins fell significantly
While net sales increased 35% to $17.43 billion in the fourth quarter, compared with $12.95 billion in fourth quarter 2010, net income decreased 58% to $177 million in the fourth quarter, or $0.38 per diluted share, compared with net income of $416 million, or $0.91 per diluted share, in fourth quarter 2010.
As usual, Amazon refused to say how many of its Kindle or Kindle Fire units it sold-“During the nine-week holiday period ending December 31, 2011, Kindle unit sales, including both the Kindle Fire and e-reader devices, increased 177% over the same period last year.”
And, to make matters as bad as possible, Amazon gave disappointing guidance
First Quarter 2012 Guidance
— Net sales are expected to be between $12.0 billion and $13.4 billion, or to grow between 22% and 36% compared with first quarter 2011.
— Operating income (loss) is expected to be between $(200) million and $100 million, or between 162% decline and 69% decline compared with first quarter 2011.
Virtually all the figures released were below Wall St. estimates
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