By Jonathan Davies

Amazon has reported a fall in profits over Christmas despite a rise in sales, adding to concerns that it will never make a serious profit.

The online retail giant made profits of $214m (£142m) in the last three months of the year, $25m less than in 2013. Compared with the last quarter, it was an improvement however, when Amazon lost $437m.

Its shares were up 8% despite Amazon's warnings that its finances were "inherently unpredictable" and said it could make an operating loss of $450m in the next few months.

Amazon said profits may be "materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce".

The retail giant has become known for its weak profits. It seems that Amazon is more concerned about its market share, launching a range of its own products and services, than it is about raising profits.

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