Amazon reports steep loss after launching bevy of new products, services

Shawn Knight

Posts: 15,256   +192
Staff member

amazon prime earnings jeff bezos quarterly report

Amazon on Thursday reported poorer-than-anticipated second quarter results. The online retail giant posted a loss of $126 million, or 27 cents per share - far greater than the 15 cents per share loss that analysts had forecasted.

In the year-ago period, Amazon posted a loss of just $7 million, or 2 cents per share. Revenue, however, rose 23 percent to $19.34 billion and was spot-on with expectations of $19.33 billion. That's up from $15.7 billion during the same period in 2013.

Amazon launched a number of new products and services this quarter which is the primary reason why losses were so steep.

As Amazon founder and CEO Jeff Bezos outlined in the earnings report, his company recently introduced Sunday delivery to a quarter of the US population. They also launched European cross-border two-day delivery for Prime, launched Prime Music, created three original kids TV series, launched the Fire TV set-top box, launched the Fire smartphone and launched Kindle Unlimited.

He said they are continuing to work hard to make the Amazon customer experience better and better.

Despite all of that, however, investors weren't pleased with Amazon's results. Share value plummeted more than 10 percent on the news, losing more than $36 of its value.

Looking ahead, Amazon expects third quarter revenue between $19.7 billion and $21.5 billion while analysts anticipate revenue around $20.81 billion.

Permalink to story.

 
Amazon's share price is down today but within a week or two it should be back up to where it was and then some. Jeff Bezos has very loyal investors backing his company and they won't let the share price languish for long. It good when a company has confident investors. They believe Jeff Bezos is a genius and can do no wrong so they always feel they have nothing to worry about. Only the chicken-hearted investors jumped ship today but the big boys will stick it out to the very end.
 
Even so I still don't think we're going to be seeing Bezos standing on a street corner rattling a tin cup at passer by's anytime soon.
 
Those $1.49 day traders who pump and dump stock all day long scratching to make a few bucks in their spare time, cause real headaches for serious investors.
 
Those $1.49 day traders who pump and dump stock all day long scratching to make a few bucks in their spare time, cause real headaches for serious investors.

Don't think serious investors give a rats *** about stock prices... if your a serious investor you dont care about short term company profit or stupid public stock prices.
 
Don't think serious investors give a rats *** about stock prices... if your a serious investor you dont care about short term company profit or stupid public stock prices.

A serious investor absolutely cares about the stock price. The difference is that they are concerned with where that price will be 1-10 years from now. By contrast, short term traders are interested in the price anywhere from minute to minute to week to week. If we follow traditional investment theory, short term dips in price benefit everybody (effective short term traders capitalize on the short and investors "buy the dip").
 
Back