Amazon.com Inc.'s stock fell Thursday after the online retailer reported its first-quarter profit rose but investors remained concerned that the Web retailer could be hurt by the weak economy.
Amazon shares fell $3.31, or 4.1 percent, to $77.69. In the past year, the stock has traded between $44.43 and $101.09.
Late Wednesday, Amazon said it expects $19.1 billion to $20 billion in 2008 revenue, which is more than it predicted in January. But analysts pointed out the outlook includes millions of dollars in revenue from Audible Inc. _ an audio book company it recently purchased _ and a boost due to a weaker U.S. dollar.
In a client note, Stifel Nicolaus & Co. analyst Scott Devitt said that after accounting for various factors he sees the guidance change resulting in a 1 percent downward adjustment to the company's full-year sales outlook.
However, "More importantly, the company's near-term guidance, (second quarter 2008), shows no deterioration in organic revenue growth relative to (the first quarter) despite the economy," he said.
Lazard Capital analyst Colin Sebastian, who rates the stock "Hold," said in a client note that Amazon's revised outlook reflects slightly lower margins in the second half of the year.
He also noted that the outlook's inclusion of Audible revenue and the foreign exchange boost "may reflect a more modest growth expectation for the core business."
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