10-25-2006, 08:45 AM
Quote: Web retailer Amazon.com on Tuesday reported lower third-quarter net income but topped Wall Street expectations, sending its shares up 12 percent.
The company, the second-most-popular e-commerce site behind eBay, said higher spending on technology squeezed profits.
Selling everything from books and computers to diamonds and lawnmowers, Amazon said net income in the quarter fell to $19 million, or 5 cents per share, from $30 million, or 7 cents per share, a year earlier. Sales rose 24 percent to $2.31 billion...
Amazon has been seen as focusing on revenue growth at the expense of profits amid intense competition. In the process, it has alienated many investors who wonder when investments in technology and a costly free shipping program will pay off...
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