Surprisingly, Amazon Shares Soar Despite Making Less Money than Expected in Q4

Amazon posted low revenue and even lower profit results

By on January 30th, 2013 10:01 GMT

Amazon's financial results for the fourth quarter of 2012, the company's most important, were below expectations in several areas, though some numbers proved quite encouraging.

Despite the miss on both expectations and guidance, Amazon shares soared in after-hours trading and are close to the all-time record, hit on January 25.

Amazon's profits dropped 45 percent, this alone should be worrying. Revenue was also below what analysts were expecting. Crucially though, revenue grew by 22 percent over the same period in 2011.

Even more importantly, Amazon's gross markings, its profit rate, grew from 20.7 percent to 24.1 percent. The only reason profits are down is because Amazon never focuses on profit, always putting its money to work.

On a revenue of $21.27 billion, €15.77 billion, Amazon made just $97 million, €72 million in profit, less than half what it made in Q4 2011.

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