Amazon posts big loss for Q3, shares tumble
As quarterly losses mount, uneasy investors are selling shares. Amazon stock is down 23% this year.
Amazon had warned that it would lose bundles of cash in the third quarter, and it didn’t disappoint.
The Seattle-based online retailer (TICKER: AMZN) said it had a net loss of $437 million for the quarter, or 95 cents a share, compared with $41 million, or 9 cents a share, in the year-ago quarter. Analysts had forecast a loss of 74 cents a share.
Revenue rose 20% to $20.6 billion, short of the $20.84 billion projected by analysts. Amazon shares tumbled 11%, to $278.89, in after-hours trading. Ahead of the report, shares had lost 23% year to date, singed by prior big losses.
Huge losses will continue in the fourth quarter, Amazon said. The company projected losses as deep as $570 million for the fourth quarter, and revenue of $27.3 billion to $30.3 billion. That’s shy of the average $30.9 billion analysts polled by Thomson Reuters had forecast.
The company has a new line of Kindle tablets that have been better received, and it is looking to make a bigger splash with consumers by opening pop-up stores in San Francisco and Sacramento.
Amazon made a huge addition in the quarter, buying the popular video game tips and tricks site Twitch for $970 million.
Source: Usatoday-Amazon posts big loss for Q3, shares tumble
