Amazon said Thursday its loss in the last quarter widened to $437 million after a series of product launches including new phones, tablets and television programs.<\/p>\n
The online retail giant, which is known for prioritizing investment over profits, nonetheless produced a disappointing quarterly report which sent its stock price tumbling.<\/p>\n
Amazon shares sank 10.4 percent to $280.49 in after-hours trade following the report.<\/p>\n
The loss in the third quarter was worse than anticipated, and far worse than the $41 million deficit in the same period a year earlier.<\/p>\n
Net sales increased 20 percent from a year ago to $20.58 billion in the quarter.<\/p>\n
“As we get ready for this upcoming holiday season, we are focused on making the customer experience easier and more stress-free than ever,” said a statement from Amazon chief executive Jeff Bezos, avoiding any direct comments on the financial results.<\/p>\n
The plunge suggests investors are impatient with Amazon, which has been expanding its products and services with little margin, failing to deliver profits.<\/p>\n
Amazon shares “took it on the chin as it appears as though Jeff Bezos wants to continue running a quasi non-profit rather than a business that makes money off of its millions of customers,” said Jon Ogg at the finance blog 24\/7 Wall Street.<\/p>\n
Ogg added that Bezos, in his statement, “has hardly done anything, well he did nothing, to address that this is a serious disappointment.”<\/p>\n
Amazon in June announced the launch of its “Fire” smartphone, upgraded its line of Kindle tablet computers and introduced a streaming media player.<\/p>\n
The company bolstered its online content with new original programs and ordered a second season of its dark comedy “Transparent,” a move that boosts its challenge to video rivals such as Netflix.<\/p>\n
The Seattle-based company bolstered its online gaming presence with a $970-million acquisition of the game platform Twitch, and expanded its “Amazon Fresh” grocery delivery service.<\/p>\n
While some Amazon products and services have been popular, its smartphone market share has been “effectively zero,” according to the Consumer Intelligence Research Partners consultancy.<\/p>\n
Amazon has not provided details on its sales of phones or tablets.<\/p>\n
Amazon’s outlook for the fourth quarter was also weaker than expected, with a forecast of net sales between $27.3 billion and $30.3 billion. For operating results, its range called for anywhere from a profit of $430 million to a loss of $570 million.<\/p>\n
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