Amazon doubles three-month profit

Amazon slightly improved its forecasts for the full year

The online retailer Amazon has beaten profit forecasts as it cuts prices to attract cash-strapped customers.

Net profit for the three months to the end of June doubled to $158m, beating forecasts in what is traditionally the weakest quarter of the year.

Sales of books, CDs and DVDs rose 31% while electronics and general merchandise sales were up 58%.

Analysts said Amazon was benefiting from high petrol prices, which made people more likely to shop from home.

"Overall Amazon would prefer a more robust consumer environment, but to some degree there are some benefits in that consumers aren't going to drive to get to the brick and mortar store," said Dan Geiman an analyst at McAdams Wright Ragen.

Other analysts were surprised at the rosiness of Amazon's forecasts for the full year.

"They seem pretty confident about the rest of the year and slightly raised full-year guidance," said Martin Pyykkonen, an analyst at Global Crown Capital.

"I didn't think they would given the macroeconomic environment, but maybe high gas prices are driving more people to shop online."