Amazon Third Quarter Profits Drop 73%
Amazon just released its third quarter sales, indicating that net income is at $63 million, or $0.14 a share, down from $231 million, or $0.51 a share a year ago. This is a 73% drop in quarterly profit from the third quarter of 2010. Thomson Reuters I/B/E/S reports that analysts expected Amazon's third-quarter earnings to land at 24 cents per share on a revenue of $10.95 billion.
Amazon has been focusing its spending on the tablet, among other long-term projects. It launched the Kindle Fire Tablet on September 28, which remains Kindle's biggest order day to date.
Despite a drop in profits, Amazon added more than 8,000 new workers in the third quarter, resulting in 50,000 full- and part-time employees. This is an increase of 136% over the past two years.
Amazon.com added more than 8,000 new workers in the third quarter, bringing its total employment to more than 50,000 full- and part-time employees for the first time in its history.
According to the third quarter statement, operating income (loss) is expected to be between $(200) million and $250 million, or between 142% decline and 47% decline compared with fourth quarter 2010.
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