Amazon.com Inc shares fall 10%

Shares of Amazon.com Inc fell as much as 10%, their biggest decline in two years, after the world’s largest internet retailer reported second-quarter profit and sales were less than analysts’ estimates.

The company’s stock fell $4.65 to $41.17 at 11.56am New York time in Nasdaq Stock Market composite trading after dropping to $41.12.

Amazon.com late yesterday said profit, excluding certain costs, was one cent less than the 19-cent average estimate of 19 analysts surveyed by Thomson Financial. Amazon.com’s revenue of $1.39 billion also was lower than analysts expected. Chief Executive Jeff Bezos, 40, is offering discounts and extending free shipping “indefinitely,” a strategy that cut into profit margins.