Amazon lowers profit outlook, shares drop

Iria · Jul 26, 2006, 05:08 AM

Source: News.com
___________
Amazon.com on Tuesday reported a 58 percent drop in second-quarter net income and cut its earnings outlook for the year due to stepped-up investment in its toy business and lower prices on many products.

Amazon shares fell to $29.80 in after-hours trading on the Inet electronic brokerage from a close of $33.59 on the Nasdaq.

Wall Street has fretted over decelerating sales growth and falling profit margins at Seattle-based Amazon, the Web's second-most popular commerce site behind eBay.

Jul 26, 2006, 05:08 AM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 87	Amazon lowers profit outlook, shares drop Source: News.com ___________ Amazon.com on Tuesday reported a 58 percent drop in second-quarter net income and cut its earnings outlook for the year due to stepped-up investment in its toy business and lower prices on many products. Amazon shares fell to $29.80 in after-hours trading on the Inet electronic brokerage from a close of $33.59 on the Nasdaq. Wall Street has fretted over decelerating sales growth and falling profit margins at Seattle-based Amazon, the Web's second-most popular commerce site behind eBay.