Amazon 2012 Q4: more wind in their “sales”
Amazon has announced their fourth quarter (Q4) results for 2012…and their sales were up 22% over Q4 2011!
It’s always hard to communicate how big a jump that is for an industry leader. Again, we are just talking about sales right now.
Yes, their GAAP (I presume that’s Generally Accepted Accounting Principles) Net Income was down 45% in a year to year, but as usual, this is Amazon investing in the future.
You can listen to the webcast of the announcement
and also download the slide deck (which some of you will want to view, to see the details.
This one might be well received by the stock market, although I don’t think I’m great at predicting that. The timing of the announcement (which was set in advance) is good, though. Everybody seems to be running the story that Barnes & Noble sees themselves closing stores steadily for the next ten years
(WSJ: “B&N Aims To Whittle Its Stores For Years”). People have buzzed concerns about Apple and Netflix, which can both be seen as competitors for Amazon (but really, who isn’t a competitor for Amazon?)
Listening to the Q&A, it was interesting to me that the first questions were more about fulfillment centers. That’s important, of course, but investors on the call didn’t go right for Kindles or sales tax, which have both been big topics in the past.
One question did have to do with whether Kindle owners buy more directly from Amazon than, say, Amazon apps on other devices. The response was that there was “very good progress” on digital media. Prime membership has increased dramatically, and people are watching a lot more of the free Prime videos…and they pay for new content more. Autorip was mentioned as well.
They said specifically they couldn’t keep up with demand on the Paperwhite in Q4 2012, and that they could have sold more if they had more.
They mentioned that they plan to spend more on expanding Amazon Instant Video.
By the way, I recently watched an episode of Bloomberg Game|Changers about Jeff Bezos. I thought it was fun, especially to see the childhood pictures, but also to hear other people talking about Amazon’s CEO. Ironically, I couldn’t find it for you on Amazon, but you can watch it on Netflix:
Based partially on that, I would say that investors shouldn’t figure that Amazon is going to get to some point and then just sit back and make profits. They are going to keep it scary for some time…as it has always been for pioneers.
This post by Bufo Calvin originally appeared in the I Love My Kindle blog.