Business

Amazon’s losses widen, shares drop

SAN FRANCISCO: Amazon.com Inc posted a much larger-than-expected loss in the second quarter as its rapid pace of investment in businesses such as digital content and consumer electronics offset a 23 percent jump in revenue.

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Shares of Amazon have slid 10 percent so far in 2014, as investors grow increasingly leery of betting on potentially rapid long-term growth at the expense of little to no profit.

On Thursday, the stock fell another 6 percent in late trade, after the largest U.S. online retailer posted a loss of 27 cents per share, nearly double Wall Street’s average estimate for a loss of 15 cents.

Amazon has invested heavily in several new business lines, from a subscription book service and digital video content to a TV streaming-box and an upcoming “Fire” smartphone.

On Thursday, it reported a net loss of $126 million, or 27 cents per share in the second quarter, compared to a loss of $7 million, or 2 cents a share a year earlier.

It reported a 23 percent increase in revenue to $19.34 billion, in line with Wall Street’s average prediction of $19.3 billion, according to Thomson Reuters I/B/E/S.

The company’s stock was at $337 in extended trade, down from a close of $358.61 on the Nasdaq.-Reuters

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