Amazon beats profit predictions but falls on extra operating costs

THE WORLD’S biggest online retailer, Amazon, beat Wall Street expectations with its results yesterday, though shares fell as it announced higher than expected costs in the run-up to the Christmas rush.

Revenue soared 39 per cent for the third quarter to $7.56bn (£4.81bn), though operating expenses also rose 40 per cent to $7.29bn. Pre-tax profit rose 16 per cent to $231m.
The company did not reveal sales of its flagship Kindle reader, but said the device remains its best-selling item in both America and the UK.

The company is adding to its customer service, IT and advertising in the fourth quarter.
US shares had closed up three per cent, but fell more than four per cent to $157.89 after hours. Amazon shares have risen over 30 per cent this year.