NEWS

Amazon shares fall after it reports widening losses

Published on: 24th October 2014

Amazon has reported a third-quarter loss of $437m (£273m) – up significantly from the $41m loss it reported for the same period last year.Amazon-logo300

The internet retailing giant also said it expected to report a bigger-than-expected loss in the next three-month period. Amazon shares dropped over 10% in after-hours trading in New York.

Investors have been wondering when Amazon will turn its significant revenues into profits for shareholders and whether it can turn its new initiatives into profitable businesses.

Amazon has been spending heavily in various new initiatives, including its Amazon Fresh grocery delivery service in the US, and its $1bn acquisition of video game streaming site Twitch. That has hurt profits at the firm, with operating expenses growing to $21.1bn, compared with the $17.1bn last year.

Shares in the firm have fallen nearly 20% since the beginning of this year.

In a statement accompanying its earnings, Amazon founder and chief executive Jeff Bezos chose instead to focus on the firm’s holiday offerings during the crucial period in the run-up to Christmas: “As we get ready for this upcoming holiday season, we are focused on making the customer experience easier and more stress-free than ever.”

If you would like to receive our daily newsflash emailclick here; you can also follow us on Twitter and Facebook and request a print subscription here.

RECENT ARTICLES

Bratz is back with special 20th anniversary dolls

Wild response to PlayMonster UK’s #FairiesForNature campaign

Disguise recruits pair to lead EMEA market growth

Supporters flock to back Clive Wooster’s Follow the Seagulls walk

Ross Thompson joins Steamforged Games as head of trade marketing

Lego and Queer Eye reveal fabulous new set featuring the Fab Five

BLE collaborates with Products of Change to spotlight sustainability

Independent Toy & Gift Show to be rebranded for 2022

New roles added to the Toy World recruitment section

Exclusive: Pings can only get better – Toy Barnhaus