Posted on: Tuesday, December 28, 2004

Amazon shares up 9% after it reports best holiday season

Associated Press

SEATTLE — Shares of Amazon.com Inc. rose nearly 9 percent yesterday after the online retailer said it recorded its best holiday season ever.

Spokesman Craig Berman said sales for the company's 10th holiday season were better than any previous year, but he declined to give specific figures.

Seattle-based Amazon also said it had set a single-day record in which 2.8 million units — or 32 items per second — were ordered. But Berman declined to say what day during the holiday season that was, or whether that also translated into a record day of sales.

Retail analysts have been optimistic about online holiday sales, even as some traditional retailers have struggled during the all-important season. Internet research firm comScore Networks Inc. said online holiday sales are now likely to increase 28 percent, beating its original projections of 23 percent to 26 percent.

Over the Thanksgiving weekend, Amazon had said that its consumer electronics sales surpassed sales of books for the first time — also in keeping with a holiday trend that favored electronic gift items this year.

Throughout the holiday, Amazon said popular items included Apple Computer Inc.'s iPod music players, as well as DVD players and digital cameras.

Amazon shares rose $3.32 or 8.5 percent to $42.25 in trading yesterday on the Nasdaq Stock Market.

However, the company's stock still remains far off its 52-week high of $57.82.