Amazon revenue misses, shares plunge

SAN FRANCISCO (Reuters) - Amazon.com posted holiday quarterly revenue that fell short of analysts' estimates and forecast disappointing first-quarter operating margins on Thursday, and its shares fell almost 10 percent.

Fourth-quarter revenue for the global online retailer was $12.95 billion. Analysts on average forecast $13.01 billion.

Amazon's fourth-quarter operating profit margin was 3.7 versus 5.0 a year earlier, a sign of how much Amazon and other retailers had to discount to attract customers during the holidays, analysts said.

"Topline still seems to be really strong, but to meet this demand they're having to invest in fulfillment and distribution and that's taking a little bit of a short-term margin toll," analyst Ken Sena at Evercore Partners said.

For the first quarter, Amazon said it expects revenue between $9.1 billion and $9.9 billion. Wall Street expects revenue of $9.31 billion, according to Thomson ReutersI/B/E/S.

Amazon expects first-quarter operating profit between $260 million and $385 million, including $140 million for stock-based compensation and asset amortization.

Excluding amortization, the forecast is $400 million to $525 million. Evercore's Sena said analysts expected $580 million.

Net income in the fourth quarter was $416 million, or 91 cents per share -- up from $384 million, or 85 cents per share, a year earlier. Analysts on average forecast 88 cents a share, according to Thomson Reuters I/B/E/S.

Amazon shares traded at $166.50, down 9.8 percent, following the earnings report, after rising more than 5 percent to end at $184.45 on Nasdaq Thursday.

(Writing by Brad Dorfman; Editing by Gary Hill)

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