Share Price Jumps On Amazon Profit24 Jan, 2003 By: Hive News
Amazon.com's stock price jumped 2.75 pecent today on yesterday's news that the leading etailer boosted fourth-quarter sales 28 percent to $1.43 billion.
Amazon spokespersons credited low prices for hike and its second reported net profit of $3 million, or 1 cent per share, compared to a net profit of $5 million, or 1 cent per share, in the year-ago period.
On that news, the stock price reached $22.39 per share Friday, approaching its 52-week high of $25.
Amazon will continue its low-price strategy and permanently extend free shipping on orders over $25, although both features will hurt margins, according to CFO Tom Szkutak. Amazon's books, music and DVD/video sales rose 13 percent to $606 million in the fourth quarter and pro forma operating profit increased 14 percent to $73 million, the company reported.
Amazon has reached a “tipping point,” observed founder and CEO Jeff Bezos. "Customers are now shopping at Amazon.com as much for our lower prices as for our selection and convenience," he said.