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Amazon profit jumps 28 percent

The e-commerce giant reports sales of $5.45bn, much higher than expected by financial analysts, and attributes the boost to sales of its Kindle e-book reader
Written by Sam Diaz, Inactive

Amazon easily beat Wall Street's estimates for its third quarter, reporting a net income of $199m, or 45 cents per share, on sales of $5.45bn, a 28 percent jump from the year-ago quarter. Analysts had been expecting earnings of 33 cents on sales of $5.03bn.

Shares of Amazon immediately jumped, up more than 10 percent in after-hours trading. The company, in its earnings announcement, was bullish on Kindle, the company's e-reader device.

"Kindle has become the number-one bestselling item by both unit sales and dollars — not just in our electronics store but across all product categories on Amazon.com... Earlier this week we began shipping the latest generation Kindle. Its 3G wireless works in the US and 100 countries," chief executive Jeff Bezos said in a statement.

For the full story, see Amazon delivers strong Q3; shares skyrocket after hours on ZDNet.com

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