The online retailing sector has received a boost with Amazon.com reporting strong sales growth during the last quarter of 2000.
In a trading statement Amazon says its worldwide sales volume reached $960 million (euro 1,017 million) - a gain of 40 per cent.
The firm now has 29 million registered customers, up four million or 16 per cent over three months.
Investors had been bracing themselves for weaker sales figures in the run-up to Christmas. Thus, when the fourth-quarter revenue came out broadly in line with Wall Street forecasts there was some relief-buying of Amazon shares.
The company is expected to post a 26 cent loss per share when it releases fourth-quarter financial results after the market close on January 30th.
Observers say if Amazon can maintain its sales growth it will soon be the first online retailer to post sales worth $1 billion in one quarter. This will be a landmark for an industry which has had little to celebrate recently.
Over the last year some analysts had questioned Seattle-based Amazon's viability. The company has always strongly denied suggestions it could run out of cash before reaching profitability.
PA