Amazon.com shares rise despite profit drop

The Seattle, Washington-based company reported a profit of $97 million on sales of $21.27 billion in the fiscal quarter that ended on December 31.

Sales were up 22 percent from the same period a year earlier, but profit was 45 percent less by comparison, according to the earnings report.

The earnings figures missed Wall Street forecasts, but a gross margin topping 24 percent outshined expectations regarding the share of revenue staying in the company coffers after costs.

Amazon.com shares climbed more than eight percent to $282.51 in after-market trading on the Nasdaq.

"We're now seeing the transition we've been expecting," said Amazon.com chief executive Jeff Bezos.

"After 5 years, eBooks is a multi-billion dollar category for us and growing fast -- up approximately 70 percent last year," he continued.

"In contrast, our physical book sales experienced the lowest December growth rate in our 17 years as a book seller, up just 5 percent."