Amazon Profit Plunges Again in 4Q — Stock Takes a Hit

The after-hours share losses erase recent Kindle-fueled increase in market value. Revenue rises 34% to $17.4 billion

That fire that sales of Amazon's new Kindle was going to light under its stock plainly hasn't ignited yet.

The online giant's shares dropped 8 percent to $178 in after-hours trading after it reported fourth-quarter earnings that were off 57 percent for the same period a year ago. That decline put Amazon's stock roughly where it was a month ago, before a 12 percent market value jump.

Investors appear to be growing weary of Amazon's long-running campaign to bolster its digital offerings and distribution networks, in line with CEO Jeff Bezos' strategy to sacrifice short-term profit for long-term success. Tuesday's numbers come on the heels of a 73% drop in profits for the third quarter. 

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