SAN FRANCISCO: Internet retail titan Amazon reported a money-losing quarter despite impressive growth in sales, sending shares plummeting by more than nine percent.
The Seattle-based firm said that it had a net loss of $126m in the quarter that ended June 30, widening the deficit from $7m in the same period a year earlier.
Sales, meanwhile, climbed to $19.34bn in a 23 percent rise from the second quarter of last year.
Amazon shares plunged more than nine percent to $323.53 in after-market trades that followed release of the earnings figures.
The loss came as Amazon poured money into a new Fire smartphone, original programming for its Prime subscription service, drone package delivery and more. “We continue working hard on making the Amazon customer experience better and better,” Amazon founder and chief executive Jeff Bezos said.
He rattled off a list of recent Amazon product or service introductions that included improved delivery operations in the US and Europe; a streaming music service, and Kindle Unlimited all-you-can-read book subscriptions.
“I feel like this is ‘Groundhog Day’ over and over again,” Forrester analyst Sucharita Mulpuru said, comparing Amazon earnings to a Bill Murray comedy film about a man perpetually reliving the same day. “I don’t know how much longer it can keep going.”