Amazon focuses on e-book promotion

AMAZON.COM, the world’s largest online retailer, forecast lower second-quarter operating profit than analysts predicted as it builds warehouses and promotes its Kindle electronic-book reader.

Operating income, which excludes taxes and interest, will be $95 million (€65m) to $245m (€165m) this quarter, the Seattle-based company said yesterday. Analysts surveyed by Bloomberg expected, on average, operating income of $369.5m (€252.4m).

Amazon chief executive Jeff Bezos is using the company’s growing cash hoard to build distribution centres, expand online video-streaming services and boost marketing for the Kindle. Spending growth has spurred investor concern that Amazon will erode its profits and valuation.