The company is showing a gross profit of $210 million, an increase of 140% on last year, although analysts expected a figure of around $230 million. The company now has over 29 million customer accounts. Its pro forma operating loss for the fourth quarter of 2000 is expected to be less than 7% of net sales, compared to a pro forma operating loss of 26% of net sales in the fourth quarter of 1999.
“This holiday season customers purchased record amounts from our electronics, kitchen and tools stores,” said Jeff Bezos, Amazon.com chief executive officer. “More than 35% of US customers made purchases during the quarter from a store other than books, music or DVD/video. And, for the second quarter in a row, the electronics store was the second-largest U.S. store, behind books.”
Warren Jensen, the company’s chief financial officer added that it is entering 2001 in a solid financial position with approximately $1.1 billion in cash and marketable securities. Amazon.com expects to release complete fourth quarter 2000 results after market close today.
Amazon.com’s shopping visits numbered more than five times those of the second-ranked shopping site and more than the combined total shopping visits for the sites ranked from second place to seventh.
One New York analyst, Jeffrey Fieler of investment bank Bear Sterns, is quoted by BBC.co.uk as saying “Yes, they’ll live. Yes, they’ll be profitable, but not as profitable as some expected.”
Another analyst voiced the concern of many in the B2C sector. Lauren Cooks Levitan of Robertson Stephens told WSJ.com, “Overall, I think it gives relief to people who were concerned about an absolute disaster. What this stock needs, though, is some real reason for institutions to care again. I just don’t think they did that.”