Amazon shares tumble despite 41% sales growth

chart_ws_stock_amazon.cominc.top(2).pngAmazon's shares have taken a pounding this year from skittish investors. By Julianne Pepitone, staff reporter


NEW YORK (CNNMoney.com) -- Amazon shares plunged 13% in after-hours trading Thursday after the company's second-quarter earnings came up far short of analyst expectations.

Amazon's sales are still growing fast: The company had revenue of $6.6 billion in the quarter ended June 30, up 41% from a year ago. Amazon's profit also rose, increasing 45% to $207 million.

But analysts hoped for better, and are keeping a close eye on Amazon's bottom line to see if intensifying competitive pressures knock the e-commerce giant off its game.

Forced by Barnes & Noble (BN) into an e-reader price war, Amazon.com slashed the price of its flagship Kindle to $189 last month. It later cut its high-end Kindle DX price tag by more than $100, to $379. Meanwile, Apple's (AAPL, Fortune 500) popular iPad -- which can store thousands of e-books -- could obliterate the entire stand-alone e-reader market within the next year or two.

Amazon tried earlier this week to draw attention to its bright spots. The company announced that sales of e-books for its popular Kindle reader now outnumber Amazon's sales of hardcover books. The company also said Kindle sales have picked up since last month's price cut, though it once again refused to disclose how many Kindles it has actually sold.

Amazon (AMZN, Fortune 500) said it expects third-quarter revenue to come in between $6.9 billion and $7.63 billion in revenue this quarter, in line with analyst estimates. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 16,577.85 178.18 1.09%
Nasdaq 4,409.87 93.80 2.17%
S&P 500 1,936.65 32.64 1.71%
Treasuries 2.20 0.02 1.05%
Data as of 3:03pm ET
Company Price Change % Change
Apple Inc 102.20 2.44 2.45%
Bank of America Corp... 16.57 0.31 1.91%
The Coca-Cola Co 40.48 -2.81 -6.49%
Regions Financial Co... 9.28 0.12 1.31%
Micron Technology In... 30.90 1.21 4.08%
Data as of 2:49pm ET

Sections

After a slow start, tickets prices in San Francisco have moved ahead of those in Kansas City ahead of start of Fall Classic. More

Chinese iCloud users are facing a new wave of attacks -- not from cybercriminals, but from their own government. More

Startups focusing on "ag tech," or agricultural technology, are gaining the attention of farmers and investors More

Foreign workers, lured by false promises of good jobs and benefits in America, soon find themselves enslaved in plain sight as victims of labor trafficking, a report from the Urban Institute finds. Here's how it can happen. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.