Aomori Group - Record High For Amazon Shares.

Aomori Group: Amazon's shares jumped after they missed their revenue and profit expectations for the fourth quarter.

Sugar Land, TX (prHWY.com) March 5, 2013 - Aomori Group have reportedly announced in a recent meeting that Amazon's shares jumped after they missed their revenue and profit expectations for the fourth quarter. Amazon reported revenues of $21.27 billion (up from $17.43 billion from Q4 2011), with profits of $97 million, or 21 cents per share (down from $177 million and 38 cents respectively from Q4 2011).

What seems to have enthused the market was not just the increase in revenue, but that their operating margins increased to 3.2 percent in the fourth quarter of last year, compared to 2.7 percent for the same period of 2011.

Aomori Group are understood to have commented that there is significant improvements being made by Amazon and investors are recognizing and rewarding that, according to one analyst close the Amazon. While Amazon has always struggled to turn its huge market share into regular profit, investors believe that they will turn that dominance into cash in time.

Aomori Group allegedly noted that Amazon has historically forfeited its margins in order to deliver extra value to their customers, either through discounting good or by subsidizing shipping costs. This policy was reiterated again recently, with chief financial officer Tom Szkutak publicly saying that putting customers first is the only reliable way to create lasting value for shareholders.

However, Aomori Group are believed have high lighted that some analysts have expressed doubts on their ability to convert their customer base into significant profits, with one saying that their customers have become used to buying products at just above cost and it will prove difficult to get them to accept any other pricing. Ultimately a business run on such small margins will struggle.

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Tag Words: aomori, aomorigroup, aomori group

Categories: Business

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