Amazon Gives A Big Hint About Holiday Traffic This Year

For all the naysayers predicting an even weaker holiday shopping season this year compared with last year, Amazon.com has a snow-sprinkled Bronx Cheer for them. The giant E-tailer announced earnings Thursday (Oct. 22) showing a 69 percent increase in third-quarter profit on a 28 percent increase in quarterly net sales, which soared from $4.26 billion to $5.45 billion.

Even more interesting is its fourth-quarter holiday predictions. Rather than predicting revenue decreases, Amazon issued guidance that predicts sharp double-digit increases: "Net sales are expected to be between $8.125 billion and $9.125 billion, or to grow between 21 percent and 36 percent compared with fourth quarter 2008." Either way, if you're planning on scaling back your server farm because you've been led to expect a drop in holiday traffic, you might want to reconsider.