Amazon Revenue Increases to $17 Billion

Amazon (Nasdaq: AMZN) reported its third-quarter numbers on Thursday Oct. 24 of $17.09 billion in revenue, a 24 percent year-over-year increase. The company's net loss was $41 million, or 9 cents a share, in the third quarter, significantly better than a net loss of $274 million, or 60 cents a share, in third quarter 2012. Sales for the company came in at $17.09 billion, climbing from $13.81 billion a year earlier. The financial reports caused the company's share price to spike instantly in after-hours trading on Thursday by $29, or 8 percent, to $361.

During the third quarter, Amazon debuted a new version of its popular tablet, the Kindle Fire HDX.  The company also recently announced an increase in the minimum spending for free shipping, up to $35 from the previous $25. Chief Financial Officer Tom Szkutak revealed that the upcharge was driven, in part, by rising fuel and transportation costs, reports The Wall Street Journal.  

The sales figures come just as Amazon is gearing up for the crucial holiday season, with fourth quarter estimates of between $23.5 billion and $26.5 billion in revenue and an operating profit of $500 million. To prepare for the additional holiday volume, the online merchant has boosted spending on warehouses and salesforce. Seven new warehouses have been establised near urban centers including San Francisco, Los Angeles, and San Antonio to speed delivery and reduce shipping costs. Amazon is also bringing a record 70,000 additional employees on board temporarily for the holidays.

For more see:
-This Wall Street Journal article
-This New York Times article

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