updated 05:37 pm EDT, Thu July 24, 2014
Growing losses troubling investors, stock down six percent in an hour
Amazon today announced financial results for its second quarter. The company reports that net sales increased 23 percent to $19.34 billion in the second quarter, compared with $15.70 billion in second quarter 2013. However, despite the increase in sales, the company's net loss was $126 million in the second quarter, or $0.27 per diluted share, compared with a net loss of $7 million, or $0.02 per diluted share, in second quarter 2013.
The company is touting all of its successes, including today's shipment of the Fire Phone to mixed reviews, but Amazon's estimates fell well short of Wall Street expectations -- analysts were predicting a loss of $0.15 per share. The company's stock is down $21 per share, or six percent since the announcement of the wide losses in just an hour.
For the next quarter, net sales are expected to be between $19.7 billion and $21.5 billion, or to grow between 15 percent and 26 percent, compared with third quarter 2013. Operating loss is expected to be between $810 million and $410 million, compared to $25 million in third quarter 2013.