Amazon revenues jump but miss expectations

Things are pretty good with Bezos and company. So good, in fact, that Wall Street overestimated Amazon's performance for the second quarter of the year.

E-commerce powerhouse Amazon.com said Thursday that its second-quarter revenues were up 41 percent from the previous year, jumping to $6.57 billion in revenues at $0.45 earnings per share.

Unfortunately, Wall Street had been hoping for $0.54 per share.

The gains were due in part to the increasing popularity of the Kindle e-book system--consisting of the physical Kindle e-reader, which has been an impressive hit, and the e-book marketplace that's also accessible via Kindle apps for devices like Apple's iPad. Earlier this week, Amazon announced that for the first time, it's selling more Kindle titles than hardcover books . Amazon is also now clocking up $1 billion per year in sales from mobile devices, the company said in conjunction with its earnings.

"We're seeing rapid growth in Kindle, Amazon Web Services, third-party sales, and retail. We're also encouraged by what we see in mobile," Amazon founder and CEO Jeff Bezos said in the earnings release. "The leading mobile commerce device today is the smartphone, but we're excited by the potential of the new category of wireless tablet computers. Over time, tablet computers could become a meaningful additional driver for our business."

It wasn't able to live up to analysts' high expectations. But, still: Considering many had been predicting that Apple's iPad, which has also been a huge hit, would spell disaster for the more limited Kindle, things look pretty good for Bezos and company. In dot-com years, it's a dinosaur, but it's managed time and again to add new features that help it stay relevant: its Amazon Web services offering, the Amazon MP3 store (which is no iTunes, but has been relatively buoyant), and its recent foray into the trendy fire-sale deals craze by acquiring Woot.com, the company that arguably started the whole fad in the first place .

About the author

Caroline McCarthy, a CNET News staff writer, is a downtown Manhattanite happily addicted to social-media tools and restaurant blogs. Her pre-CNET resume includes interning at an IT security firm and brewing cappuccinos.

 

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