The ever-volatile stock of global e-tail giant Amazon.com yesterday jumped 33.6%, rising $2.81 to close at $11.18, after the company forecast better Q1 results than previously expected.
Amazon revealed that its net loss for the first quarter is now expected to be around $255 million. Citing improved operating efficiencies, the company reduced its forecast loss per share from 34 cents to 22 cents, considerably less than the 30 cents prophesied by analysts.
Meanwhile, group sales are now expected to top $695m, up 20% on Q1 2000 and at the top end of the $650m–$700m range divined by financial soothsayers. Gross margins should rise 25%, as compared to the forecast 21%–23%.
Commented Amazon chief executive Jeff Bezos: “For the fifth consecutive quarter we saw substantial improvement in our operations and bottom-line performance.” Full Q1 results are due for release on 24 April.
News source: BBC Online Business News (UK); Financial Times