To: 2MAR$ who wrote (1440 ) 10/26/2011 3:43:48 AM From: 2MAR$ Read Replies (1) | Respond to AMZN ...$195 Apple War Costs Investors $20B Shares Tumble http://www.bloomberg.com/news/2011-10-26/amazon-s-apple-war-costs-investors-20b.html?cmpid=yhoo Amazon’s operating results may range from a loss of $200 million to a profit of $250 million this quarter, the company said yesterday. Analysts were projecting a gain of $512.7 million on average, according to Bloomberg data. Sales will be $16.5 billion to $18.7 billion, Amazon said. The last time Amazon suffered an operating loss was in the third quarter of 2001, when it fell $68.9 million into the red. Third-quarter net income fell 73 percent to $63 million, or 14 cents a share, from $231 million, or 51 cents, a year earlier. That missed the 24 cents predicted by analysts. In addition to competing with Apple in a range of markets, including digital music and movies, Amazon is vying with startups such as Spotify Ltd., which offer streaming songs. For now, Amazon’s growth plans aren’t doing enough to spur profit, even as sales climb, Sebastian said. Colin Gillis , an analyst at BGC Partners LP. With an operating margin of 30.8 last quarter, Apple squeezes more profitability from sales, even with its own investment in new products, he said. Amazon trades at 119.5 times earnings, compared with Apple’s 14.4 times, according to data compiled by Bloomberg.
