From City AM:
Amazon share price takes a dive as losses increase
More of the same from Amazon, as it continues its tradition of favouring growth over profits.
The e-commerce giant has just announced a loss of $126m, or $0.27 per share for the three months to the end of June, coming in significantly below Wall Street estimates of a $0.15 per share loss.And from Barron's:
The second quarter has seen a significant widening of the company's losses compared to the same period last year, which were $7m, or $0.2 per share.
This is despite Amazon's revenues enjoying a rise of almost $4bn, climbing to $19.3bn, from $15.7bn in the same period last year.
The revenue is exactly in line with what analysts were anticipating and constitutes an increase of 23 per cent year-on-year.
For the next quarter, Amazon's revenue guidance is between $19.7bn and $25bn, again in-line with consensus estimates.
But are investors starting to get impatient?
The retailer's share price, which is often highly volatile in reaction to earnings reports given how little information the company releases about its strategic plans, has taken a dive on the latest results, down around six per cent in after hours trading.
As an indication of how explosive Amazon's stock is in the follow up to earnings, it averages a 9.5 per cent move either way, according to Bespoke....MORE
...Q3 Loss to Be Much Bigger than Q2