Amazon shares slide as company announces lower profits

<p>Shares in Amazon slipped last night as the company announced lower profits in December.</p>

Amazon's share price plunged on the technology-heavy Nasdaq index in New York last night (January 29th), after the website announced a sharp decline in profits in the final quarter of 2012.

Net income for the three months to the end of December slipped to $97 million (£61.5 million) from $177 million a year earlier.

This fall came in spite of a rise in revenues during this timeframe, from $17.43 billion in 2011 to $21.27 billion – a hike of 22 per cent.

Founder and chief executive of Amazon.com Jeff Bezos said the company is going through a "transition" as the e-book side of its operations gains momentum.

"We're excited and very grateful to our customers for their response to Kindle and our ever-expanding ecosystem and selection," he stated.

At close of play in New York last night, shares in Amazon fell by 5.6 per cent to $260.35 per unit.

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