 "Amazon warns of possible loss, mulls Prime fee-hike")
Amazon.com Inc missed Wall Street's estimates for the crucial holiday period and cautioned investors about a possible operating loss this quarter as shipping costs climb, pushing its shares down more than 5 per cent.
Amazon expects operating results for the current quarter to range from a $200 million loss to a $200 million profit, compared with a $181 million profit a year ago.
To cover rising fuel and transport costs, the company is considering a $20 to $40 increase in the annual $79 fee it charges users of its "Prime" two-day shipping and online media service, considered instrumental to driving online purchases of both goods and digital media.
The company more than doubled net income to $239 million, or 51 cents per share. Analysts had expected 66 cents, on average.
Net sales grew 20 percent to $25.6 billion in the fourth quarter, versus expectations for just above $26 billion and slowing from the 24 percent of the previous three months.
International sales rose just 13 percent, below Wall Street expectations.
Amazon expects operating results for the current quarter to range from a $200 million loss to a $200 million profit, compared with a $181 million profit a year ago.
To cover rising fuel and transport costs, the company is considering a $20 to $40 increase in the annual $79 fee it charges users of its "Prime" two-day shipping and online media service, considered instrumental to driving online purchases of both goods and digital media.
The company more than doubled net income to $239 million, or 51 cents per share. Analysts had expected 66 cents, on average.
Net sales grew 20 percent to $25.6 billion in the fourth quarter, versus expectations for just above $26 billion and slowing from the 24 percent of the previous three months.
International sales rose just 13 percent, below Wall Street expectations.