Amazon.com's Q1 net income plunges 33%; Wall Street (amazingly) doesn't freak out

Online retail giant's profit misses estimates, but revenue tops expectations

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Shares of Amazon.com (NASDAQ: AMZN) fell less than 1 percent in extended trading Tuesday after the online retail giant reported a 33 percent drop in first-quarter net income.

Amazon's stock finished down 1.66, or 0.91 percent, to 180.64 in Tuesday's after-hours session, though it dropped as far as 165.68 at one point.

(Also see: Amazon shares get boost from analyst upgrade)

The company announced Q1 net income of $201 million, or 44 cents a share, down 33 percent from $299 million, or 66 cents a share, in the year-ago period.

However, revenue soared 38 percent to $9.86 billion from $7.13 billion a year ago.

Wall Street estimates had called for Q1 net income of 61 cents a share on revenue of $9.54 billion.

The company's operating margin of 3.3 percent was below expectations of a 3.8 percent margin.

Amazon has been investing like crazy on fulfillment centers, marketing and technology to build infrastructure in anticipation of growth, so the earnings hit wasn't entirely unexpected.

And the company says it's not done investing in itself. While Amazon said Q2 revenue should grow between 35 percent and 47 percent, operating income is expected to be between $95 million and $245 million, a decline of 9 percent to 65 percent versus last year's second quarter.

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