10/31/2014

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Business

Amazon shares fall on 2Q loss

Amazon shares fall on 2Q loss
This June 4, 2014 photo shows Amazon.com boxes in Phoenix. Amazon reports quarterly financial results on Thursday, July 24, 2014. (AP Photo/Ross D. Franklin)
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SEATTLE (AP) - Shares of Amazon.com Inc. fell Thursday after the e-commerce retailer reported a larger than expected second quarter loss as expenses outpaced a surge in revenue.

Amazon has long focused on spending the money it makes to grow and expand into new areas. The company introduced a smartphone due out this week, for instance, expanded Sunday deliveries and recently began offering a set-top video streaming box.

Investors are usually accepting of Amazon's thin profit and focus on strong revenue. But not this quarter.

The Seattle-based company's shares fell $25.63, or 7.1 percent, to $332.98 in Thursday's aftermarket trading.

Amazon posted a loss of $126 million, or 27 cents per share, compared with $7 million, or 2 cents per share, in the same quarter a year earlier. The average estimate of analysts surveyed by Zacks Investment Research was for a loss of 13 cents per share.

The company said revenue rose 23 percent to $19.34 billion from $15.7 billion in the same quarter a year earlier, and beat Wall Street forecasts. Analysts expected $19.33 billion, according to Zacks.

Looking forward, the company expects third-quarter revenue between $19.7 billion and $21.5 billion. Analysts expect $20.81 billion, according to FactSet.

Amazon shares have dipped roughly 10 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed 7.6 percent.
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