The world's largest online retailer, Amazon.com Inc (NASDAQ:AMZN) reported a jump in fourth-quarter profits, but saw its revenues miss estimates and it forecast a profit drop in the current quarter raising concerns about the costs of its new investments.
The Seattle-based retail giant saw its fourth-quarter profit jump 55% to US$749mln, topping guidance, but revenues only increased by 22% to US$43.7bn, below analysts' expectations.
The company also forecast first-quarter operating income of between US$250mln and $900mln, well below the consensus estimate of $1.3bn. Amazon reported operating income of US$1.1bn for the same period last year.
In reaction, Amazon shares were down around 3% to US$816.53 in early New York trading.
The company is currently spending heavily to take greater control of package delivery and to expand its video service around the world
This week Amazon announced it is building its first air cargo hub in Kentucky, a US$1.5bn project. It also recently made its debut in the ocean-freight sector, handling shipment of goods to its US warehouses from Chinese merchants selling on its site.
Last month, Amazon pledged to create 100,000 full-time jobs in the US by mid-2018 -- a tip of the hat to President Donald Trump's employment drive.