Jeff Bezos

Amazon.com Inc. shares sank 6%, reversing earlier gains, after a report poured cold water on investor optimism that the online superstore could join forces with retail powerhouse Wal-Mart Stores Inc., analysts said. Amazon shares rose in early Nasdaq trading amid a rally in tech stocks, but ended the day off 75 cents at $11.88 after a report in the online edition of the Wall Street Journal said a tie-up between Amazon and Wal-Mart was not expected soon.

One of the worst things about getting a new gadget or toy is trying to free it from the hard plastic casing. To reduce those battles, Amazon.com Inc. said it was working with manufacturers to make the products it sells easier to open and more environmentally friendly. Initially, the online retailer is altering the packaging in the U.S. for 19 top-selling products from manufacturers including Mattel Inc., Microsoft Corp. and flash memory card maker Transcend Information Inc. The online retailer said that it is looking at eliminating plastic "clamshell" cases and plastic-covered wire ties that hold items in place.

Unlike its rivals that are selling their tablets at or near cost, Apple is reportedly selling its iPad mini for a lot more than it costs to make. The material for Apple's new line of 7.9-inch screen tablets adds up to $188, IHS, an analytics firm,  estimates . When you add in a manufacturing expense, the total comes to $198. That's a margin of $141 between the estimated cost and the $329 price tag on the 16 GB iPad mini. That margin increases as storage goes up. Apple sells 32 GB models for $429 and 64 GB models for $529, even though the cost of material only increases slightly, IHS estimates.

Amazon Chief Executive Jeff Bezos confirmed that the online retail giant makes no profit on its new Kindle tablet and e-readers. Bezos told the BBC that Amazon sells the new Kindle Fire HD tablets as well as the Kindle Paperwhite e-reader at the company's cost. This is because Amazon is relying on the sales of digital content to make money. Bezos said that once users have e-readers or tablets, they purchase more digital content than they did before. "We want to make money when people use our devices, not when people buy our devices," Bezos said.

In a move to bump up physical book sales, Stephen King will not release an e-book version of his new novel , "Joyland," the Wall Street Journal reports. It's something of a radical move for the man who stood onstage with Amazon's Jeff Bezos in 2009 to introduce the Kindle 2. This time King has decided to throw his support behind brick-and-mortar booksellers. "I have no plans for a digital version," King told the Journal. "In the meantime, let people stir their sticks and go to an actual bookstore rather than a digital one. " However, the print book is still available for pre-order from online retailer Amazon.

Amazon.com reported a 22% increase in revenue in the first quarter but a hefty decline in profit. For the three months ended March 31, the e-commerce behemoth said profit fell 37% to $82 million, or 18 cents a share, from $130 million, or 28 cents, a year earlier. Revenue totaled $16.07 billion, up 22% from $13.18 billion. Despite the sharp decline in profit, the results came in well ahead of expectations. Analysts polled by FactSet were expecting earnings of 7 cents a share.

Amazon.com Inc. said it named Joseph Galli as its first president and chief operating officer after Galli decided against joining PepsiCo Inc. Galli, 41, previously was president of Black & Decker Corp.'s global power tools and accessories unit, where he built up its successful DeWalt tool line, until he resigned in April. Amazon.com is expanding its management team as it spends millions of dollars to develop new products and advertise its brand.

Amazon.com Inc. is hoping to invigorate a nascent market for electronic books by introducing its own e-book reader with free wireless connectivity. Monday's announcement comes as e-books remain a sliver of overall book sales, partly because they lack the comfort and intimacy of bound paper. Amazon Chief Executive Jeff Bezos said the Web retailer spent three years developing the Kindle reader, which the company is selling online for $399.