Amazon May Lose Hundreds of Millions, but Things Are Improving
Amazon just announced another quarter of tiny profits, and says it may lose up to $340 million this quarter. But things are still looking up for the giant online retailer.
Amazon just announced another quarter of tiny profits, and says it may lose up to $340 million this quarter. But things are still looking up for the giant online retailer.
Amazon's low prices and tiny profits have led some observers to accuse the company of being a "charitable organization." In a letter to shareholders, CEO Jeff Bezos hit back.
Amazon reported sharply lower earnings, but its results were good enough for at least five analysts to raise their price targets for Amazon’s stock. Boeing’s net beat estimates and it’s sticking with its production plans for the 787 Dreamliner, despite the current grounding of the fleet worldwide.
Amazon just released its fourth-quarter earnings report, announcing it had racked up $21.27 billion in sales -- an increase of 22% from a year earlier. But for all those billions in sales, it managed just $97 million in profits.
Apple can no longer be counted on to beat Wall Street's profit targets. The world's most valuable tech company posted mixed quarterly results after Thursday's market close. Though net sales soared 27%, this marked the third miss in the five quarters that CEO Tim Cook has been at the helm.
An online giant sees its margins contract as it replaces physical delivery with digital delivery. Revenue's growing. Profitability's shrinking. It may even post an operating loss during the next quarter. Not many months ago, this was Netflix. Now, it's Amazon.com.
The Kindle Fire hits the market next month, and the $199 tablet is already a "hot" seller. This would normally be the kind of news that would send board rooms into a frenzy of high-fives, but Amazon won't turn much of a profit on the entry-level tablets. Then again, it may not need to.
Amazon's spending on expansion will eventually help its bottom line, but right now it's costing the online retailer on Wall Street. The company's third-quarter net income fell 73 percent despite revenue growth as Amazon built sales fulfillment centers at a rapid clip. Neither that drop nor its revenue outlook for the current quarter made investors happy.
Amazon.com on Thursday announced it is buying Lovefilm, a European home-video distributor that some have called the Netflix of Europe. The deal will give the world's largest online retailer a stronger foothold in digital-video distribution. Will it buy Netflix next?
Amazon's third-quarter profits rose 16% thanks to surge in sales of electronic products such as its Kindle e-reader, the world's largest online retailer reported after the bell Thursday.
Investors hammered Amazon over it's underwhelming second-quarter results. That's no biggie for the online retailer, though. When it comes to e-books, Amazon remains top dog, and it looks very likely to stay that way.
Amazon earnings misses Wall Street expectations, share tumble in after-market trading.









