Tags: amazon | AMZN | Internet | online | retail | stock

Amazon Powers Past the Retail Doubters

By    |   Friday, 24 Jun 2011 08:10 AM

Amazon.com (AMZN) continues to demonstrate that variety is the spice of life in online retailing. The Fortune 500 company is a one-stop juggernaut on the Internet, selling a staggering selection of goods from books, videos, games and music to computers, apparel, jewelry and much more. With an 11-figure top line, Amazon easily lives up to its name. Net sales have increased steadily, hitting $34.2 billion in 2010, more than three times the level of 2006.

Annual net income grew to $1.15 billion in 2010 from less than one-fifth of that number just four years earlier. The Seattle, Wash., retailer had about 33,700 full-time and part-time employees at the end of 2010. Its offices, warehouses, data centers, and other operating facilities are concentrated in North America, Europe, and Asia.

Amazon reported higher net sales but lower net income in the seasonally slow first quarter. The company collected net income of $201 million, or 44 cents per share, in the January to March period on net sales of $9.86 billion. Amazon had net income of $299 million, or 66 cents per share, on net sales of $7.13 billion in the same period last year.

Barclays Capital initiated equity coverage of Amazon in late spring with an "equal weight" rating. But Wall Street generally has a better opinion of Amazon than that. In early June, most securities analysts covering the online retailer recommended buying its stock.

Barclays Capital said in a June 1 report that speedier digital data transmission and increasingly powerful mobile communication devices will drive improved profitability in the Internet sector of the economy over the next five years.

Amazon itself may market additional mobile devices to complement its Kindle electronic reader for e-books and other downloadable digital content. The Kindle is the top-selling product on Amazon's web site, according to the company.

Inventive culture

Amazon founder and chief executive officer Jeff Bezos said in the company's April 26 statement on first-quarter earnings that Amazon employees "love inventing on behalf of customers and have never been more excited about the long-term opportunities."

Avi Silver, a stock analyst with CLSA Asia-Pacific Markets, has put out a bullish report on Amazon's potential as a player in the emerging tablet computer market.

Silver cited, among other advantages, Amazon's large existing base of retail accounts and the promise of the company's off-premise, or "in-the-cloud," computing services for business customers.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Companies
Amazon.com (AMZN) continues to demonstrate that variety is the spice of life in online retailing. The Fortune 500 company is a one-stop juggernaut on the Internet, selling a staggering selection of goods from books, videos, games and music to computers, apparel, jewelry and...
amazon,AMZN,Internet,online,retail,stock
394
2011-10-24
Friday, 24 Jun 2011 08:10 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved