Amazon Sales on the Rise, but Expansion is Costly
By Rob Scott
July 28, 2011
July 28, 2011
- Amazon announced this week that its revenue increased a staggering 51 percent to $9.9 billion in Q2, with significant help from the highly successful ad-supported Kindle (now the most popular version of the e-reader).
- Amazon finance chief Tom Szkutak explains this marks the Seattle-based company’s best growth rate in 10 years.
- However, the growth also comes at a cost; profit declined 8 percent as the world’s largest online retailer continued to invest in fulfillment centers and digital offerings. Additionally, operating expenses rose 54 percent.
- Amazon also had 5,300 new hires in the quarter, giving the company a total of 43,200 employees, up from 28,300 a year ago.
- Investors appear unruffled by Amazon’s infrastructure spending; stock rose 5.7 percent to $226.40 on Tuesday.
No Comments Yet
You can be the first to comment!
Leave a comment
You must be logged in to post a comment.