Amazon just reported a great quarter with revenue up 51% over the same quarter last year.
Operating income for this quarter, and guidance for next quarter appear to be lighter than expected. This happened last quarter as well. Amazon is hiring like crazy and making investments for the long run.
Amazon’s earnings release doesn’t reveal much, but CEO Jeff Bezos says the ad-supported Kindle 3G is now the best selling Kindle.
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Head count continues to explode, with Amazon adding 5,300 new people in the quarter.
Link to the rest at Business Insider
Profit was down 7.7% from last year because Amazon is spending so much on growth according to the The Wall Street Journal (Link may expire after a few days)
A quick check of several securities analysts shows everyone recommending additional purchases of Amazon’s stock. Amazon has just missed doubling its share price in the last 12 months.
Passive Guy would note in passing that, should Amazon’s hiring rate continue, in the next six months, it will hire the same number of people that Borders will be laying off.
Unfortunately, it won’t be the same people who lost their jobs at Borders. Fortunately, Amazon will pay far higher salaries to most of its new hires than Borders paid to most of those who have been or will be laid off.
Apple and Google have lots of money, but Amazon’s revenues this quarter – almost $10 Billion – are about ten times the total market value of Barnes & Noble – about $1 Billion. PG would hate to be in a big-spending competition with Amazon these days.