Investors reacted negatively to Amazon's
fourth quarter financial report despite that fact that the e-commerce giant announced a 20 percent year-over-year sales increase to $25.59 billion. Operating cash flow increased 31 percent to $5.47 billion, operating income jumped 26 percent to $510 million, and net income climbed to $239 million, or $0.51 per diluted share, compared with $92 million, or $0.21 per diluted share, in the fourth quarter of 2012.
"It’s a good time to be an Amazon customer. You can now read your Kindle gate-to-gate, get instant on-device tech support via our revolutionary Mayday button, and have packages delivered to your door even on Sundays," said Jeff Bezos, founder and CEO of Amazon.com. "In just the last weeks, Forrester, YouGov, and ForeSee have all ranked Amazon No. 1 – and we believe we’re just scratching the surface of what world-class customer service can be."
Even though it was a positive quarter underscored by growth in several segments, investors took exception to Amazon coming up short of Wall Street expectations in revenue and earnings per share, Forbes reports
. It probably didn't help that Amazon founder and CEO Jeff Bezos
didn't address the elephant in the room in his statement about the results.
Amazon closed the trading day on Thursday at $403.01 per share, a gain of 4.9 percent. However, Amazon took a beating in after hours trading, which has continued so far today (Friday). At the time of this writing, Amazon is trading at $365.26 per share, down $37.75 since yesterday's close.