Amazon.com 2Q earnings fall nearly 58 pct.

Seattle-Times ^ | 7/25/2006 | ALLISON LINN

[Proud_USA_Republican]

SEATTLE — Amazon.com Inc. said Tuesday that second-quarter earnings plunged nearly 58 percent as the online retailer focused on giving customers cheap or free shipping deals and investing in new technologies.

Despite the hefty income drop, sales jumped 22 percent, which the company attributed to its focus on providing customers with things they want - such as the shipping deals.

Amazon.com shares fell more than 12 percent in after-hours trading as the online retailer also said it planned to invest heavily in its new toy sales strategy and cut prices on many products. It also projected lower operating income for the year than previously forecast.

The latest spending plans left some wondering when the investments would pay off for investors and not just customers.

"In some respects it's kind of one thing after another," said Dan Geiman, an analyst with McAdams Wright Ragen.

[Proud_USA_Republican]

Amazon's problems continue......

You know something is wrong when you have 2.14 Billion in sales, but only able to claim a 20 million profit?

[headstamp]

Not to worry. When the new space travel business is up and running, the money will be just rolling in.

[msnimje]

I used to buy books on Amazon but now I buy them on ebay for a dollar or two.

[kingu]

Using Amazon Prime, I'm able to order videos cheaper from Amazon than I am from my distributors; plus I get them in two days. A fair amount of books come in at about the same price including shipping from my distributors as well, though I've found that Buy.com's efforts to undercut Amazon results in an even lower bottom line price.

My suggestion for Amazon would be to stop playing so much in the electronics arena, as it seems like they're losing too much there, and tighten up their cell phone deals. Also, I'm absolutely shocked at their marketing strategies - they don't mine their customers anywhere near enough. A few semi-intelligent expert programs to send out marketing materials could pay off for them very well.

[Republican Wildcat]

Sometimes the flat rate for the used items is less on Amazon.com than bidding at ebay. Ebay also has that half.com which does the same as Amazon's feature. Deal hunting is a great way to save money - especially when I was buying college textbooks.

You can find the older editions of books on those sites after they are no longer allowed to be sold in the bookstores - there is usually little to no difference in the books and you save an incredible amount of money on the older editions. $5 on a book sure beats $90 everyone else in the class was paying.

[msnimje]

$5 on a book sure beats $90 everyone else in the class was paying.

I wish I had that option when I was in college (pre-Al Gore Inventing the Internet days).

As far as bidding on ebay goes, I usually don't. Most times you can find the item at a fixed price or in an ebay store for just a few dollars.
All you need is a little patience and you can usually find it within a week or two.

[Tulsa Brian]

It's Jack. The check is in the mail. Sorry it's two years late. Sorry I misfigured my checking account and I'm overdrawn. Sorry I stopped payment on it. So, when it comes, just tear it up. Sorry.

[sergeantdave]

I've upgraded my power tools with great deals from Amazon that started in March. Some tools like my new joiner, cabinet clamps and sander were 40% off the next lowest price from any retailer. Plus free shipping!

Thank you, Amazon. The second quarter maybe wasn't too good for stockholders, but it was great for my workshop.