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Amazon shares drop 12% after disappointing results 

Amazon.com posted quarterly results that fell short of expectations and handed in a weak revenue outlook on Thursday, sending shares sharply lower in extended-hours trading.

Stock in the world's largest Internet retailer was more than 12 percent lower at $353 after the Nasdaq's closing bell. It had risen nearly 5 percent during regular trading.

Amazon posted fourth-quarter earnings of 51 cents a share on sales of $25.59 billion. Wall Street analysts had expected profit of 66 cents a share on sales of $26.06 billion, according to a consensus estimates from Thomson Reuters.

In addition, the company posted a current-quarter sales forecast of between $18.2 billion and $19.9 billion. Analysts currently expect $19.67 billion for the first quarter.

The company said international sales gained just 13 percent, lower than Wall Street forecasts for around 14 percent to 15 percent.

The stock has had a stellar run since the lows of 2009, with shares surging close to the $400 mark by the end of 2013.

Earlier this week, the Wall Street Journal reported that Amazon plans to move into the mobile payments business, offering brick-and-mortar retailers a checkout system that uses Kindle tables as soon as this summer, citing sources.

In December, Amazon said that its Amazon Prime service had a "record-setting holiday season." According to the company, more than 1 million people signed up in the third week of December alone. Prime members get free two-day shipping on eligible items, free streaming of 150,000-plus movies and TV episodes, and free e-book borrowing from a library of more than 475,000 titles.

Recently, Amazon also expanded its grocery delivery service to two new U.S. cities, introduced Sunday package delivery with the Postal Service and reached agreements to build warehouses in several states.