Quarterly net income slides 33 percent as company tries to wrangle marketshare for its data storage business
Amazon.com posted its quarterly earnings on Tuesday, reporting nearly a 40 percent jump in revenues but a 33 percent slide in net income, as the company invested a ton of cash in its cloud computing business.
Amazon's revenue was $9.88 billion — up 38.2 percent — for the quarter, but the company's net income fell about 33 percent (to $201 million, or 44 cents per share), and its operating profit slipped 18.2 percent on "beefed-up investment in its cloud computing services."
Last week, a failure at one of Amazon's cloud computing data centers caused an outage for several high-profile social media sites, including Foursquare.
But Amazon said it expects that its investments will pay off. The company forecast revenue for its current quarter will come in between $8.85 billion to $9.65 billion, well above what Wall Street ($8.7 billion) is expecting.
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