Amazon CEO Jeff Bezos is probably not a happy man right now, with the company reporting disappointing fourth quarter 2011 earnings, which includes a remarkable 58% decline in internet cash flow.
A lot of analysts have been unsure wherever Amazon would stand this past quarter with the kick off of the hyped $ 199 Kindle Hearth tablet. The gadget was believed to not be instantly profitable for Amazon, but the firm expected men and women to buy media for their gadgets and counting on media sales to make up for it. 1 analyst predicted Amazon marketed 6 million Fires this quarter but Amazon would not say how numerous units were sold.
“We are grateful to the millions of buyers who obtained the Kindle Fireplace and Kindle e-reader products this holiday period, making Kindle our bestselling merchandise throughout both the U.S. and Europe,” stated Amazon CEO Jeff Bezos, in a assertion. “Our thousands and thousands of third-get together sellers had a tremendous getaway time with 65% device progress and now signify 36% of somme models offered.”
From a income standpoint, the organization did rather effectively with $ 17.43 billion in income, a 35 % enhance from the calendar year-ago interval. But the firm missed extensive on profits, with internet revenue reducing 58 % to $ 177 million, or $ .38 for each diluted talk about, compared with web revenue of $ 416 million, or $ .91 for each diluted talk about, a year ago. Running earnings for the company was $ 260 million in Q4, in comparison with $ 474 million in the calendar year-back period.
Unfortunately, even the revenues did not satisfy steep Wall Road expectations of $ 18.three billion in revenues, in accordance to estimates from FactSet Study.
Amazon’s stock price in following-hours investing reflected the disappointment, with the value down among 8 and 10 % in the previous half hour.
Jeff Bezos photo: James Duncan Davidson/Flickr
Filed below: VentureBeat 
