LONDON (Brand Republic) - Amazon offered hope for the battered new economy as its shares rallied yesterday when the company revealed that first-quarter sales would be ahead of expectations and losses would be narrower.
For the first time, the online retailer released a statement ahead of the financial results, which are due to be announced on April 24, saying that losses per share are expected to be about 15% less than predicted because of lower costs and an increase in international sales.
Net sales are expected to be $695m (£482.20m), compared with analysts’ previous forecasts of $670m (£464.86m). Losses for the quarter are expected to be less than $150m (£104.07m), and the company will be left with cash and assets of $640m (£444.04m).
The confident statement will dispel recent speculation over Amazon’s financial state. Some analysts had predicted that the company would run out of cash by the summer, but chief executive Jeff Bezos insists that it would reach profitability this year.
Shares closed at $11.18 (£7.76) on the Nasdaq stock exchange last night, up 33.57% from its previous close of $8.37 (£5.81).
www.amazon.com