Why Amazon's investors overlook skimpy profits but demand blistering sales

Amazon's still-formidable online shopping ecosystem has lost a bit of momentum heading into the crucial holiday season

It takes a lot for Amazon.com Inc. to spook investors, but it managed to do so with its Thursday earnings report.

The e-commerce giant said its quarterly revenue rose 29 per cent from a year earlier. That pace of revenue growth was within the range that Amazon had forecast, but its $56.6 billion in sales was still below what analysts were predicting, and the shares tumbled in after-hours trading.

I don’t blame investors for reading this report and promptly wiping out the strong gains Amazon shares had enjoyed as part of a broader market rally during the trading day Thursday. The fact