Amazon surprises with profit despite fierce spending
SAN FRANCISCO (AFP) - Amazon surprised the market Thursday with a quarterly profit far better than anticipated for the online giant known for pouring money into projects such as original video programs and delivery drones.
"Amazon beat estimates even though Jeff Bezos is moving at a paranoid pace; pretty much spending money as fast as it comes in and going flat out as if there were somebody right on his heels chasing him," said independent analyst Rob Enderle of Enderle Group in Silicon Valley.
"When a competitor does emerge they won't have a chance of catching him. It's the most aggressive growth strategy for such a long period of time that I have ever seen."
Amazon posted earnings of $214 million for the fourth quarter as sales jumped 15 per cent to $29.3 billion, swinging to profit after two consecutive losing quarters.
For the full year 2014, Amazon posted a net loss of $241 million on sales of $89 billion.
Amazon has faced pressure from shareholders to deliver profits even as founder Jeff Bezos has invested in a vast array of projects -- from online video to its own smartphones and delivery drones to business email.
"I see Amazon creating lots of experiments to change from being a giant Web mall to being a much more diverse company," said Forrester analyst Frank Gillett.
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