Amazon Shares Tumble 10 Percent on Wider-Than-Expected Losses
Amazon shares plunged more than 10 percent on Thursday during after-hours trading after the company reported wider-than-expected losses for the second quarter.
The Seattle-based e-commerce company reported that it lost 27 cents per share, compared with the loss of 15 cents per share that analysts polled by Thomson Reuters predicted. Revenue increased 23 percent to $19.3 billion, which was in line with analyst estimates.
"We continue working hard on making the Amazon customer experience better and better,” said CEO Jeff Bezos, noting that the company launched a number of new products or services during the second quarter, including Sunday delivery, music streaming service Prime Music and eBook subscription service Kindle Unlimited.
The earnings fall on the same day that Amazon's new Fire phones reach customers. So far, the phone has received mediocre reviews.
During a conference call with investors, Bezos touched on the company's Prime Instant Video service. Although Amazon doesn't release subscriber data for Prime, Bezos said that "more and more Prime members are streaming free content ... We're very pleased with what we're seeing."
Wide losses sent Amazon shares falling more than 10 percent, or as much as $38, during after-hours trading.