Losses jump at Amazon, as investments pile up
The chickens are not coming home to roost at Amazon just yet, but they are checking the flight schedule to Seattle. Three months ago, Amazon was expected to lose 7 cents a share in the third quarter. After the retailer warned that it was investing so heavily in so many things, analysts pushed loss projections up to 74 cents a share. Even that was not enough. After the market closed Thursday, Amazon reported it lost 95 cents a share. There was other disappointing news. Revenue came in $260 million less than analysts projections and the company said it might lose money again in the fourth quarter. Revenue growth, Amazons powerhouse, is also fading. Amazons story for several years has been that it is growing furiously, investing heavily and postponing profits until the halcyon days just around the corner when it will sell all things to all people all the time. That took the company stock on a wild ride, pushing it up to $400 a share early this year. But Wall Street has been questioning those assumptions recently, and the questions surfaced again after the earnings report.