The two firms will become independent publicly traded companies in 2015. The move follows pressure from investor Carl Icahn to spin off the payments ...
Despite 2.5 million new holiday customers and fourth-quarter sales that rose to a higher-than-predicted $650 million, Amazon.com continued to warn of substantial losses. The online retailer's stock dropped 14% on Wednesday morning, following the news.
Last year's fourth quarter sales jumped 150% from a year earlier, yet the company still expects to incur inventory-related charges and writedowns, "in part because we carried deep inventory in start-up businesses such as toys and electronics," says chief financial officer Warren Jenson.
The company also says 99% of holiday orders were shipped on time, a task that dipped further into coffers. "We went all-out to make sure we delivered for customers this holiday season," adds Jenson. As a result, higher seasonal sales "will not translate into lower net losses in the fourth quarter.".
Still the company exceeded analyst's expectations, who earlier predicted sales in the $516 million range.