Amazon stock plunges as loss widens
The online retail giant, which is known for prioritising investment over profits, nonetheless produced a disappointing quarterly report which sent its stock price tumbling.
Amazon shares sank 10.5 per cent to $US280.32 in after hours trade following the report.
The loss in the third quarter was worse than anticipated, and far worse than the $US41 million deficit in the same period a year earlier.
Net sales increased 20 per cent from a year ago to $US20.58 billion in the quarter.
“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 CEO, Jeff Bezos, avoiding any direct comments on the financial results.
Amazon in June announced the launch of its “Fire” smartphone and also upgraded its line of Kindle tablet computers.
The company bolstered its online content with new original programs and ordered a second season of its dark comedy Transparent.
The Seattle-based company bolstered its online gaming presence with a $US970 million acquisition of the game platform Twitch, and expanded its “Amazon Fresh” grocery delivery service.
While some Amazon products and services have been popular, its smartphone market shares has been “effectively zero”, according to the Consumer Intelligence Research Partners consultancy.
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