Amazon warns of loss in third quarter amid large-scale spending
Second-quarter revenue was $12.83bn, up 29pc from a year before. Net income was $7m, or one cent per share, versus $191m, or 41 cents a share, a year previously, the company said.
Amazon, the world's largest Internet retailer, forecast third-quarter revenue of $12.9bn to $14.3bn. Analysts were forecasting $14.1bn, according to Thomson Reuters.
Amazon is in the midst of a massive investment phase that has hammered revenues over the past year. The company is spending heavily on overseas expansion and building out its network of storage and shipping warehouses.
It's as well developing a mobile platform that includes the Kindle Fire tablet computer and possibly other mobile gadgets just as a smartphone. The company has been investing a lot in digital content to deliver over this platform, including movies, TV shows, music, apps and games. This has intensified competition with Apple, Google and even Microsoft and Facebook.
Conference call with reporters on Thursday
During a conference call with reporters on Thursday, chief financial officer Tom Szkutak said operating expenses are growing faster than revenue and recommended that this may continue.
The company as well plans to keep investing a lot in video content and innovation infrastructure to support its cloud computing and online retail businesses, the Mr Szkutak said.
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