Amazon Follows In EBay's Footsteps With Disappointing Fourth Quarter; Earnings Fall Short Of Views; Company also unveils new discount shipping program with an annual member fee.(INTERNET & TECHNOLOGY)

Byline: PETE BARLAS

Now, the other e-commerce leader has disappointed investors. Amazon.com late Wednesday reported fourth-quarter pro forma profit that failed to meet analyst expectations.

Amazon shares were down more than 14% after hours, after the company released results that included 35 cents in pro forma profit excluding a one-time tax benefit. Analysts had expected 40 cents.

EBay, the other major e-commerce company, on Jan. 19 reported a rare earnings miss, sending its shares tumbling 19% after hours and the next day.

For Amazon, the largest e-tailer, the fourth quarter is considered the strongest. And its sales beat expectations, rising 31% from the year-ago period to $2.54 billion. But the company noted that without the benefit from changes in foreign exchange rates, sales would have risen 26%. That still beat views, however.

Analysts polled by Thomson First Call called for a 24% increase.

Meanwhile, the company on Wednesday also unveiled its first membership program, called Amazon Prime.