E-tail giant Amazon has revealed mediocre quarterly results yesterday as its turnover did not grow as much as expected ('only' up 20 % to 20.58 billion dollars) and losses have grown tenfold.
Losses grow to 437 million dollars
The online seller had to take a huge 437 million dollar (345 million euro) loss, a thunderous blow compared to the 41 million dollar (32 million euro) loss from last year.
Analysts have now become far less optimistic about Amazon's next quarter, despite the presence of the ever-important holiday season. At first, a 30.9 billion dollar (24.42 billion euro) turnover was on the cards, but analysts now expect Amazon to 'merely' reach a turnover between 27.3 and 30.3 billion dollars (21.6 and 23.9 billion euro).
No lift-off for smartphone
Huge investments do explain the enormous losses somewhat, like the purchase of movie and series rights to compete with services like Hulu and Netflix.
Amazon's smartphone failure also impacted the numbers tremendously. Bad reviews for the Amazon Fire did not help, while a price cut also failed to help the smartphone out.
Jeff Bezos, Amazon CEO, is nevertheless not worried about the results. He believes profit will come as turnover grows, even though plenty of investors do not seem to share his enthusiasm...