Analysts: Ruling Could Hurt Amazon.com

What deals go on between executives behind the locked doors at online giant Amazon.com? As it turns out, probably the same sorts of deals that go on behind locked doors at every other company. But not all executives get such harsh words from behind the judge’s bench in a court of law. Allison Linn of The Associated Press (via The Seattle Post-Intelligencer) writes:

When a New Jersey judge ruled that Amazon.com Inc. breached a groundbreaking contract with Toys R Us Inc., she delivered with the legal blow a public scolding, calling company executives obstinate, arrogant and even childish.

Analysts say the decision could hurt Amazon.com’s relationships with other partners. They also say the judge’s harsh words - including accusations that company executives exhibited selective memories - illuminate behavior some on Wall Street have long complained is too secretive.

Yet the familiar Amazon.com Web site remains hot property, and the Seattle company has signed on several new partners in recent months. Some critics even concede that shareholders will still give the company some time to prove that its secret schemes will bear fruit.

“If Amazon produces the numbers, nobody will care,” said Safa Rashtchy, analyst with Piper Jaffray. “If the growth isn’t there, then I think it will become more of an issue. Why isn’t there the disclosure level that we would expect?”