News
  •  paul
  • 50.25% (Neutral)
  • Member Topic Starter
2014-10-24T14:05:42Z
Amazon came up short of analysts' expectations for its fiscal third quarter of 2014. The e-tailer saw its sales increase 20 percent to $20.58 billion, compared with $17.09 billion in the same quarter a year ago, though the firm also posted an operating loss of $544 million, compared with an operating loss of $25 million a year prior.

The end result of Amazon's efforts for its third quarter ended September 30, 2014, is a net loss of $437 million, or $0.95 per diluted share, compared with a net loss of $41 million, or $0.09 per diluted share, in the third quarter of 2013.

Nevertheless, company CEO Jeff Bezos tried to remain optimistic as the online retailer heads into what it hopes will be a busy holiday shopping season.

Jeff Bezos
Image Source: Flickr (James Duncan Davidson)

"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 Jeff Bezos, founder and CEO of Amazon.com. "In addition to our already low prices, we will offer more than 15,000 Lightning Deals with early access to select deals for Prime members, hundreds of millions of products across dozens of categories, curated gift lists like Holiday Toy List and Electronics Holiday Gift Guide, new features like #AmazonWishList, and a great new lineup of products like Kindle Voyage and Fire HD Kids Edition. And if you order your gifts on AmazonSmile, we’ll donate a percentage of your purchase price to your favorite charity.”"

Investors aren't sharing his optimism. Shares of Amazon plummeted by as much as 13 percent during after hours trading and are down by more than 8 percent, or $25.58, on Friday.
realneil
2014-10-24T21:04:32Z

They'll be getting some of my money this year. Just like they always do,............

StaticFX
2014-10-24T22:57:31Z

realneil wrote:

They'll be getting some of my money this year. Just like they always do,............

Christmas is coming.. and its MUCH easier than going to the mall (They hired 80K temps for the holidays this year!!)

mernerion
2014-10-24T23:56:55Z

Amazon has one of the biggest online markets I've ever seen. I doubt this turns into anything significant.

InfinityzeN1
2014-10-25T00:30:15Z

Amazon is like any other big retail biz. They lose money for large parts of the year, then make it up during the mass sales. However, that 10x increase in lose compared to last year seems a little... high.

MagnutzZachary
2014-10-25T06:49:49Z

Did anyone expect them to ever turn a profit?

altshep123
2014-10-25T12:27:12Z

I haven't been to the mall in over a year 😨 Even then it was only because my wife asked me to join her... I'd be curious to know what operating costs racked up that kind of loss. I've been a loyal prime member for years and shop on Amazon at least once a month.

RJeffries
2014-10-25T21:58:59Z

I wonder if reports losses works to the companies advantage? I smell BS Amazon!

gibbersome
2014-10-31T19:31:05Z
The big takeaway is their margins have fallen. It seems they are willing to temporarily lose money in order to eliminate the competition.