Amazon failed to meet lofty expectations set by analysts for its fourth-quarter earnings, but the company’s Kindle device, as well as digital books, continued to do well over the holidays.
While Amazon’s revenue for the quarter topped $10 billion for the first time and the company’s net income beat expectations at $416 million, it still wasn’t enough for investors, sending the company’s stock into freefall.
Analyst forecasts had pegged revenue for the quarter at $13.02 billion on average, while the company took in $12.95 billion for the quarter.
Shares of Amazon were down nearly 10 percent on that news in afterhours trading, but bounced back to just over 7 percent down at the opening bell today.
Amazon said little about the Kindle in its earnings call, but the company continues to maintain that the device is its biggest seller across all products. Additionally, eBooks outsold paperbacks for the fourth quarter, while both categories saw continued growth.
Overall media sales grew at a rate of 13 percent.