Amazon Shares Up On Strong Q2 Results: Revenues Jump 35%, Profits Up 250%

[mandy]

Amazon.com posted quarterly net profit on Tuesday that leaped a surprising 250 percent as sales rose 35 percent and subscriptions to the online retailer's discount shipping program accelerated, sending shares up 12 percent in after-hours trading.

The company also raised its forecast for full-year sales.

Net income in the second quarter rose to $78 million, or 19 cents a share, compared with $22 million, or 5 cents a share, a year earlier. Revenue rose to $2.89 billion in the second quarter, which is seasonally the slowest...

full article: http://news.com.com/Amazon+net+profit+ju...g=nefd.top

[mandy]

A related article:

...Amazon’s Marketplaces business, which lets visitors to Amazon buy from third-party merchants, instead of directly from Amazon.com.

This growing business – 30 percent of Amazon’s sales, up from 29 percent in the same quarter last year – allows the site to offer more of a selection and to boost its operating margins, since it does not have to stock or ship these products.

It also places Seattle-based Amazon in direct competition with eBay, the auction giant of San Jose.

This year, Amazon has made several changes to its Marketplaces business. If Amazon.com does not itself stock a piece of merchandise, but a third-party retailer does, the site now directs customers right to the offering from other seller. In certain cases, even if Amazon has the item but an independent merchant offers it for less, buyers may be directed to the other merchant’s offer...

full article: http://bits.blogs.nytimes.com/2007/07/25...ults-ebay/