Amazon.com's Profit Disappoints Analysts

By Cindy Waxer April 27, 2011

The results are in. Amazon.com reports that its net income decreased 33 percent to $201 million in the latest quarter, compared with net income of $299 million, in first quarter 2010. That dip, prompted by Amazon’s investments in expanded operations and warehouse capacity, comes as a disappointment to industry analysts.

According to Thomson Reuters I/B/E/S, Wall Street analysts anticipated that Amazon would report a first-quarter profit of 61 cents per share – a drop from 66 cents last year. However, they also expected $9.51 billion in sales – a 33.4 percent spike from last year.

In actuality, Amazon.com’s net sales increased 38 percent to $9.86 billion in the first quarter, compared with $7.13 billion in first quarter 2010. And Amazon continues to enhance its products and services.

“In the last 90 days, we announced Kindle with Special Offers, Kindle Library Lending, Audible audiobooks on Kindle, Appstore for Android, Amazon for Windows Phone 7, Checkout by Amazon in both Germany and the U.K., a Kindle Store in Germany, Cloud Drive, Cloud Player, and Prime Instant Video - just to call out a few of the things we've been working on," said Jeff Bezos, founder and CEO of Amazon.com, in a statement. "We love inventing on behalf of customers and have never been more excited about the long-term opportunities."

Nevertheless, in recent weeks, Amazon has missed the opportunity to prove its investments in cloud computing a worthwhile endeavor. As reported by TechZone360.com, just yesterday, Amazon got its cloud computing services, Amazon Web Services (AWS) and Elastic Compute Cloud (EC2), back up and running after nearly a week-long outage. According to Amazon's AWS status dashboard, the problems began around 1:41am PT when sites such as Foursquare began experiencing delays and errors when connecting to Amazon’s cloud computing servers.

For all the cost savings and convenience promised by cloud computing services such as Amazon’s AWS, there has been widespread criticism of the pay-as-you-go technology.




Edited by Rich Steeves

TechZone360 Contributing Editor

SHARE THIS ARTICLE
Related Articles

Four Reasons to Reach for the Cloud after World Earth Day

By: Special Guest    4/23/2018

The World Earth Day agenda offers a chance to flip the rationale for cloud adoption and highlight environmental benefits that the technology brings pr…

Read More

Bloomberg BETA: Models Are Key to Machine Intelligence

By: Paula Bernier    4/19/2018

James Cham, partner at seed fund Bloomberg BETA, was at Cisco Collaboration Summit today talking about the importance of models to the future of machi…

Read More

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More