Amazon warns of possible loss this quarter, stock drops 10 percent

SEATTLE (Reuters) - Amazon.com Inc missed Wall Street's profit estimates for the crucial holiday period and cautioned investors about a possible operating loss this quarter, pushing its shares down more than 9 percent after hours.

The world's largest Internet retailer, which has steadily chipped away at its brick-and-mortar rivals' market share, said it expected operating results for the current quarter to range from a $200 million loss to a $200 million profit, without elaborating.

Executives may shed light on factors affecting results in a call with investors later on Thursday.

Amazon racked up $25.6 billion in revenue in the fourth quarter, versus expectations for just above $26 billion. International sales rose just 13 percent, below Wall Street expectations for around 14 percent to 15 percent growth.

The company, which tends to focus on creating new markets and products rather than immediate profit, posted net income of $239 million, or 51 cents per share, compared with $97 million, or 21 cents per share, in the year-ago quarter. Analysts had expected 66 cents, on average.

"Amazon's gotten so many hall passes on earnings," said Colin Gillis, an analyst at BGC Financial, but pressure on the company to produce profit is now rising. "Perhaps the market expectations for them to deliver income, as their revenue growth slows" is increasing, said Gillis.

(Reporting by Bill Rigby and Edwin Chan; editing by Andrew Hay)