Feeds

Shock sales surge sends Amazon shares soaring

Investors reassured by Q1 results

Top 5 reasons to deploy VMware with Tegile

Amazon shares rose at least 16 per cent in pre-market trading today after the etailing giant reported a lift in first quarter revenue.

Analysts had been concerned that spending on new products like the Kindle Fire and the usual cost-cutting behaviour of the online firm could heavily impact on profits.

But Amazon said its net income for Q1 2012 was a fairly healthy $130m while its revenues grew to $13.18bn.

The online bazaar is an ardent follower of the idea that you need to spend money to make money and has often worried investors with its heavy spending on new stuff.

But so far, its strategies have worked and despite its predictions that next quarter could yield somewhere between an operating loss of $260m and a profit of just $40m, shareholders seem reassured.

Amazon said its Kindle Fire was the number one bestselling item on Amazon.com since its launch and that nine out of the 10 top sellers were digital products like Kindles, ebooks, movies, music and apps.

The web firm has been experimenting with the world of video-on-demand with its Instant Video services, which it recently released onto the PlayStation 3. Amazon said it now has licensing deals with Discovery and Viacom to add to deals with big partners such as CBS, Fox, NBC Universal, Sony, Warner Bros and Disney. ®

Beginner's guide to SSL certificates

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Special pleading against mass surveillance won't help anyone
Protecting journalists alone won't protect their sources
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Apple's iPhone 6 first-day sales are MEANINGLESS, mutters analyst
Big weekend queues only represent fruity firm's supply
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Bill Gates, drugs and the internet: Top 10 Larry Ellison quotes
'I certainly never expected to become rich ... this is surreal'
Big Content Australia just blew a big hole in its credibility
AHEDA's research on average content prices did not expose methodology, so appears less than rigourous
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.