Amazon’s Earnings Disappoint Investors

The folks at Amazon has built one of the best companies in the world by offering a wide variety of goods, innovative services, low prices, and superb customer service. Sometimes, it is easy to forget the amount of work it takes to run such a company in a profitable fashion. Keeping investors happy all the time is a challenge too. Amazon’s net income for the first quarter of 2011 dropped by 33%. But it is not all doom and gloom for the company. Amazon has already launched a cloud-based music service and an Android Appstore to reach more households. It is expanding and spending a lot of money doing so.

In the last 90 days, we announced Kindle with Special Offers, Kindle Library Lending, Audible audiobooks on Kindle, Appstore for Android, Amazon for Windows Phone 7, Checkout by Amazon in both Germany and the U.K., a Kindle Store in Germany, Cloud Drive, Cloud Player, and Prime Instant Video – just to call out a few of the things we’ve been working on…We love inventing on behalf of customers and have never been more excited about the long-term opportunities,

said Jeff Bezos, CEO, Amazon. Considering that Amazon’s revenue increased by 38%, the future of the company is bright. Amazon is expected to introduce an Android tablet to the market in the upcoming months. The future of Kindle is not too clear though. Many of us expected Kindle 4 to have been already announced by now. Instead we got Kindle 3 with special offers.

Amazon will continue growing, and it will be hard to slow down. Its net income may drop for the upcoming quarters. That is to be expected when it has to invest a ton of money on its expansion plans.