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Amazon Faces Digital Downturn

DIGITAL DOWNTURN: Amazon’s 68% earnings surge during the first quarter hasn’t quite convinced analysts and traders, with longer-term issues relating to the competitiveness of digital media. Amazon has yet to disclose its own MP3 sales, though they still trail Apple's iTunes by a large margin. "Amazon is not likely to experience the same profitability and leadership position in digital media that it enjoys selling physical books, movies and music," said BGC Financial analyst Colin Gillis. (4/26a)

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