Amazon.com, seen by many as the bellwether of B2C web sites,
announced revenues of $960 million for the three months to December
2000. The figures are slightly below analyst expectations of sales
reaching $1 billion for the quarter, they represent a 42% increase
on last year.
The company is showing a gross profit of $210 million, an
increase of 140% on last year, although analysts expected a figure
of around $230 million. The company now has over 29 million
customer accounts. Its pro forma operating loss for the fourth
quarter of 2000 is expected to be less than 7% of net sales,
compared to a pro forma operating loss of 26% of net sales in the
fourth quarter of 1999.
“This holiday season customers purchased record amounts from our
electronics, kitchen and tools stores,” said Jeff Bezos, Amazon.com
chief executive officer. “More than 35% of US customers made
purchases during the quarter from a store other than books, music
or DVD/video. And, for the second quarter in a row, the electronics
store was the second-largest U.S. store, behind books.”
Warren Jensen, the company’s chief financial officer added that
it is entering 2001 in a solid financial position with
approximately $1.1 billion in cash and marketable securities.
Amazon.com expects to release complete fourth quarter 2000 results
after market close today.
Amazon.com’s shopping visits numbered more than five times those
of the second-ranked shopping site and more than the combined total
shopping visits for the sites ranked from second place to
seventh.
One New York analyst, Jeffrey Fieler of investment bank Bear
Sterns, is quoted by BBC.co.uk as saying “Yes, they’ll live. Yes,
they’ll be profitable, but not as profitable as some expected.”
Another analyst voiced the concern of many in the B2C sector.
Lauren Cooks Levitan of Robertson Stephens told WSJ.com, “Overall,
I think it gives relief to people who were concerned about an
absolute disaster. What this stock needs, though, is some real
reason for institutions to care again. I just don’t think they did
that.”
