Amazon Loss Widens, CEO Alarms Investors With Spending Pace [View all]
Source: Bloomberg
By Adam Satariano
Jeff Bezos is testing the patience of investors after Amazon.com Inc. (AMZN) missed analysts’ estimates for a second straight quarter, sending shares tumbling 11 percent.
The world’s largest online retailer yesterday reported a second-quarter loss of $126 million, more than double what was predicted, even as sales climbed 23 percent to $19.3 billion. Expenses jumped 24 percent to $19.4 billion.
Amazon remains one of the most highly valued companies in the U.S., yet the business is losing some of its sheen as profits are dragged down by investments that Bezos, the co-founder and chief executive officer, is making in cloud computing, warehouses and gadgets such as the new Fire smartphone. While shareholders have been patient, they’re increasingly seeking signs that the long-term strategy will work.
“All of us understand making investments, and then there’s a point where investors don’t know what the payoff is,” said Michael Pachter, an analyst at Wedbush Securities Inc. in Los Angeles, who predicted that Amazon would report a quarterly loss. “What if they get to $200 billion in revenue and still don’t have profit?”
FULL story and video at link.
This replaces an earlier story with more details.
Read more: http://www.bloomberg.com/news/2014-07-25/amazon-loss-widens-as-ceo-alarms-investors-with-spending.html
The Colbert boycott hurting them?
Stephen Colbert takes on Amazon: http://www.cbsnews.com/news/stephen-colbert-tirade-boycott-against-amazon-com/
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