AMAZON.COM (Nasdaq symbol AMZN; www.amazon.com) is a major online retailer.
It gets about 33% of its sales from books, music and videos. Other products, including electronics, computer games and toys, make up the other 67%. Amazon Marketplace lets other companies sell their products through Amazon?s websites.
In the three months ended December 31, 2012, Amazon?s earnings fell 45.2%, to $97.0 million, or $0.21 a share. A year earlier, it earned $177.0 million, or $0.38 a share. The profit decline came despite a 22.0% jump in sales, to $21.3 billion from $17.4 billion.
In the latest quarter, the company spent $1.3 billion on ?technology and content,? up 56.0% from $862 million a year earlier. That was a major reason for the lower earnings.
Pat has now released his #1 Aggressive Stock Pick for 2013. Alimentation Couche-Tard, our #1 Stock Pick for 2012 in Stock Pickers Digest gained over 75% from the time we made it our top pick early in 2012. You can get our full details and analysis on this year?s number one pick if you subscribe to Stock Pickers Digest now. And when you subscribe you immediately start getting updates and recommendations every week on fast-moving stocks in our Email/Telephone hotline.
And as a new subscriber, you can save $50.00 on a risk-free introductory subscription to Stock Pickers Digest. Click here to begin your no-risk subscription right away.
Tech stocks: Amazon aims to compete with Apple in digital content and cloud computing services
Amazon?s additional spending included investments in new models of its Kindle reader, including the Kindle Fire tablet computer. It also invested in cloud computing services and expanded its digital content business to compete with rival Apple Inc.
In addition, Amazon made big investments to expand its network of warehouses, especially near larger centres. That also weighed on its profits.
The company faces a number of challenges. For example, it must deal with intense competition in the e-book market from big rivals like eBay, Apple, Barnes & Noble and Google. As well, Apple still dominates the tablet market.
In the latest edition of Stock Pickers Digest, we look at whether Amazon?s heavy spending on technology will pay off with a growing clientele, rising sales and higher profits. We conclude with our clear buy-hold-sell advice on the stock.
COMMENTS PLEASE?Share your investment knowledge and opinions with fellow TSINetwork.ca members
Do you make many of your purchases online these days? Do you believe that online buying will cut heavily into more traditional shopping? Or do you think the desire for personal service and the social aspects of shopping will keep traditional stores viable? Does online shopping affect the way you look at consumer stocks? Let us know what you think.
Be the first to comment.
mayweather vs cotto shumpert hopkins hopkins dear john derrick rose torn acl pacers
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.