Oops! Amazon Posts First Net Loss in Nearly 9 Years
Online retail giant Amazon (NASDAQ:AMZN) released its quarterly report Thursday afternoon and the numbers were disappointing, to say the least. The Seattle, Washington-based company reported its first quarterly net losses since 2003, and revenues failed to meet expectations.
Poor performance by LivingSocial.com, in which Amazon has a large ownership stake, was partly culpable for the ugly third-quarter losses, as well as massive spending as the company continues to grow existing operations and invest in new business development.
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Net loss came in at $274 million, or 60 cents per share. For comparison, Amazon posted net income of $63 million, or 14 cents per share, during last year’s third quarter.
While revenue for the quarter did improve 27 percent from last year to $13.8 billion, it still came up short of what analysts had predicted.
The surprisingly bad quarterly numbers have been dodged by Amazon stock, which has most recently been up over 1 percent during morning trading.