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By Armando Duke (AXcess News) Houston, TX - Shares of Amazon.com surged over 9 per cent Wednesday morning after the online retailer reported earnings higher than analysts had estimated. The share price increase was on top of an already impressive 14 per cent gain Tuesday as day traders began covering short positions. Shipping costs ate into Amazon.com's earnings, lowering net income 1 per cent. But the online retailer managed to beat analysts estimates by 2 cents per share, creatnig a buying frenzy for Amazno.com shares. Amaozn.com reported earnings of 5 cents per share fro the third-quarter. Gross profit fell from 24.9 per cent last year to 23.8 per cent in the third-quarter deu to higher shipping and technology costs, lowering the pro forma operating profit margin to 3.1 per cent, from 6.5 per cent the year before. But with higher gross revenue, now up 24 per cnet to $2.31 billion, investors were relieved over Amazon.com's growth prospects. Amazon.com forecast fourth quarter gross revenue to be between $3.625 to $3.95 billion. Shares of Amazon.com were up $3.04 at $36.67 in late morning trading in New York.
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