Amazon reported a 38 percent jump in first
quarter revenues to $9.86 billion Tuesday, but profits fell as
the Web retail giant invested heavily in new products.
Amazon said it earned just $201 million profit in the quarter, a 33 percent drop from a year ago, when it earned $299 million in the quarter. Its first quarter revenue in 2010 was $7.13 billion.
Investors sent the company's shares down over 2 percent following the earnings call as investors were surprised at the company's large increase in costs.
But in a statement, Amazon founder and CEO Jeff Bezos tried to reassure them. "We love inventing on behalf of customers and have never been more excited about the long-term opportunities."
The fruits of those investment ares unlikely to pay off in the near future. Amazon predicted that its second quarter revenues could rise by as much as 47 percent over the same period last year, to $9.65 billion, with operating income expected to be between $95 million and $245 million.
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