This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/wales/7364472.stm

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Amazon shares fall despite growth Amazon shares fall despite growth
(about 10 hours later)
Shares in Amazon fell in after-hours trading in New York, despite the online retailer reporting strong growth in quarterly profits. Shares in Amazon fell in New York despite the online retailer reporting strong profit and sales growth in the first three months of 2008.
Amazon's net income rose 30% to $143m (£72m) in the first three months of 2008, which was better than expected. Over the period, Amazon's net income rose 30% to $143m (£72m) which was better than expected.
But there was concern about what would happen to its profit margins later in the year if prices have to be cut to attract hard-hit US consumers.But there was concern about what would happen to its profit margins later in the year if prices have to be cut to attract hard-hit US consumers.
Amazon shares fell $3.59, or 4.4%, to $77.51 in after-hours trading. Nervous investors sent Amazon shares down $3.30, or 4%, to $77.70.
It's a good revenue story, but the margins are not expanding as the more bullish people have been hoping Martin Pyykkonen, Global Crown Capital See Amazon's share price
"Our sales growth this quarter was driven by low prices and millions of in-stock items available for immediate shipment," said Jeff Bezos, Amazon founder and chief executive.
But there are worries that stiff price competition will see an erosion of earnings despite impressive revenue growth.
'Price competition''Price competition'
"It's a good revenue story, but the margins are not expanding as the more bullish people have been hoping," said Martin Pyykkonen at Global Crown Capital."It's a good revenue story, but the margins are not expanding as the more bullish people have been hoping," said Martin Pyykkonen at Global Crown Capital.
"They are indicating they can sell more, and they are selling more, but presumably in here there is a lot of price competition.""They are indicating they can sell more, and they are selling more, but presumably in here there is a lot of price competition."
Amazon's chief financial officer Tom Szkutak said that he had not seen evidence of US shoppers changing their habits ahead of a possible recession.Amazon's chief financial officer Tom Szkutak said that he had not seen evidence of US shoppers changing their habits ahead of a possible recession.
But analysts said there were signs that the business outside the US was being forced to cut prices as it attempted to move into new areas.But analysts said there were signs that the business outside the US was being forced to cut prices as it attempted to move into new areas.