AMAZON shares plunge 20%
Tuesday, July 24th 2001, 12:00 am
By: News On 6
NEW YORK (AP) _ Shares of Amazon.com Inc. plunged 20 percent Tuesday after the company cautioned that it would see lower-than-expected revenue in the coming months.
Amazon's revenue outlook came as the company reported second-quarter earnings that beat Wall Street's expectations, and also announced a deal with AOL Time Warner to help it build a Web site for America Online's 30 million users.
Amazon said Monday that it expects net sales for the third quarter to be around dlrs 625 million to dlrs 675 million, a drop from analysts' expectations of around dlrs 700 million to dlrs 725 million.
Amazon also said it expected net sales for the entire year to increase by between 11 percent and 16 percent over 2000 figures, while it had previously forecast an increase of 20 percent to 30 percent.
The news sent shares of Amazon down dlrs 3.22 to dlrs 12.81 in morning trading on the Nasdaq Stock Market.