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Amazon books hit share price

Loan security causes downturn on the markets...
Written by Sonya Rabbitte, Contributor

Loan security causes downturn on the markets...

Shares in Amazon fell nine per cent yesterday on concerns that the company was mortgaging a lot of its assets as security against other loans. The shares dropped after a report in the Wall Street Journal noted that Amazon had pledged $166.7m of its assets as collateral against other expenses, mostly thought to be property leases. The report said use of that money as collateral - as outlined in Amazon's annual report released last month - suggested the company's cash and marketable securities for the first quarter would be much less than its $550m forecast. Amazon said its liquidity is not a concern, and that it aims to be cash flow positive this year. Shares closed down 8.74 per cent at $12.53, and slumped a further 0.64 per cent in after hours trading. In Germany Amazon's European listing was down 3.45 per cent in trading this morning.
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