MobileRead Forums - View Single Post - Amazon post the largest quarterly loss in 14 years

pwalker8 · 10-23-2014, 08:37 PM

http://online.wsj.com/articles/amazo...LEFTTopStories

It's a short article, so I can't post much of it, but here is a key paragraph

" Amazon.com Inc. ’s soaring ambitions are coming at a steep cost, dragging the e-commerce giant to its largest quarterly loss in 14 years.

A surge in spending on new-product development, music and video licensing, and other parts of the Seattle company’s expansion strategy led to a net loss of $437 million in the third quarter, worse than its year-earlier loss of $41 million. The wider loss came despite a 20% jump in revenue to $20.58 billion."

In addition, the article reports that Amazon took a $170 million charge on it's Amazon Fire smartphone which has been selling poorly.

Ouch. Amazon's stock prices fell 12% in after hours trading in reaction to the news. It's one thing to not show a profit after rolling the money back into the company, it's totally different to show that big of a loss.

I eagerly await to see all the usual suspects try to spin this into either a "not a big deal" or a "it's just a paper loss".

I suspect this new may have something to do with Amazon giving Hachette most of what it wanted.

10-23-2014, 08:37 PM	#1
pwalker8 Grand Sorcerer Posts: 7,196 Karma: 70314280 Join Date: Dec 2006 Location: Atlanta, GA Device: iPad Pro, iPad mini, Kobo Aura, Amazon paperwhite, Sony PRS-T2	Amazon post the largest quarterly loss in 14 years http://online.wsj.com/articles/amazo...LEFTTopStories It's a short article, so I can't post much of it, but here is a key paragraph " Amazon.com Inc. ’s soaring ambitions are coming at a steep cost, dragging the e-commerce giant to its largest quarterly loss in 14 years. A surge in spending on new-product development, music and video licensing, and other parts of the Seattle company’s expansion strategy led to a net loss of $437 million in the third quarter, worse than its year-earlier loss of $41 million. The wider loss came despite a 20% jump in revenue to $20.58 billion." In addition, the article reports that Amazon took a $170 million charge on it's Amazon Fire smartphone which has been selling poorly. Ouch. Amazon's stock prices fell 12% in after hours trading in reaction to the news. It's one thing to not show a profit after rolling the money back into the company, it's totally different to show that big of a loss. I eagerly await to see all the usual suspects try to spin this into either a "not a big deal" or a "it's just a paper loss". I suspect this new may have something to do with Amazon giving Hachette most of what it wanted.