Out-Law / Your Daily Need-To-Know

Amazon.com yesterday announced preliminary results for the first three months of the year showing an expected to show sales up 21% to $695 million with a net loss of less than $255 million. The news took its share price up by more than 30%.

Gross profit is expected to exceed $175 million, an increase of over 35%. Jeff Bezos, Amazon.com's founder and CEO, said:

“For the fifth consecutive quarter we saw substantial improvement in our operations and bottom-line performance. Electronics demonstrated especially strong growth and improvements.”

Bezos expects his company to make an operating profit, excluding unusual costs, by the year’s end. The formal first quarter report is expected on 24th April.

The company’s success or failure is seen by many as a marker of internet stocks generally. Yesterday’s surge in Amazon.com’s share price, at a time when many internet companies have been issuing profit warnings, helped also raise the share value of Germany’s T-Online, Italy’s Tiscali and Spain’s Terra Networks.

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