Amazon's quarterly earnings and outlook fell short of analysts' expectations Tuesday.
AMZN)The stock initially fell then popped higher in extended-hours trading. (Click here to get the latest quotes for Amazon:
For the first quarter, the company expects revenue of $15 billion to $16.6 billion, compared with estimates of $16.86 billion, according to Thomson Reuters. During the period, the world's largest Internet retailer grabbed a big share of online spending during the crucial holiday period.
The Seattle-based company reported net income of $97 million, or 21 cents a share in the fourth quarter, compared with $177 million, or 38 cents a share in the same period a year earlier.
Operating income jumped 56 percent to $405 million in the fourth quarter, compared with $260 million in the fourth quarter of 2011, Amazon also said.
Revenue increased 22 percent to $21.27 billion during the quarter from $17.43 billion a year ago.
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Analysts had expected the company to report earnings excluding items of 28 cents a share on $22.26 billion in revenue, according to a consensus estimate from Thomson Reuters.
"Revenue was light. In general, weaker than everyone expected on the top line and guidance was similarly weaker than what everyone was expecting on the top line. There was a massive selloff at the beginning," said Kerry Rice, an analyst at Needham & Company. "I'm not that surprised. We've had a lot of negative retail data points. General suggestions have been that e-commerce was not as strong as people had expected."
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