|Amazon Reports Q2 Sales up 23% to $19.34 Billion|
Sales are up, but those losses seem larger than i'd have expected. There's talk that there's downward pressure on profitability for AWS.
|Net loss was $126 million in the second quarter, or $0.27 per diluted share, compared with net loss of $7 million, or $0.02 per diluted share, in second quarter 2013. |
“We continue working hard on making the Amazon customer experience better and better,” said Jeff Bezos, founder and CEO of Amazon.com. “We’ve recently introduced Sunday delivery coverage to 25% of the U.S. population, launched European cross-border Two-Day Delivery for Prime, launched Prime Music with over one million songs, created three original kids TV series, added world-class parental controls to Fire TV with FreeTime, and launched Kindle Unlimited, an eBook subscription service. For our AWS customers we launched Amazon Zocalo, T2 instances, an SSD-backed EBS volume, Amazon Cognito, Amazon Mobile Analytics, and the AWS Mobile SDK, and we substantially reduced prices. And today customers all over the U.S. will begin receiving their new Fire phones — including Firefly, Dynamic Perspective, and one full year of Prime — we can’t wait to get them in customers’ hands.” Amazon Reports Q2 Sales up 23% to $19.34 Billion [phx.corporate-ir.net]
Seems investors are finally getting uneasy about continued losses. Amazon has had free range for way too long now, something needs to change and will change.
Honestly, the thing that has made me scratch my head the most, was the whole 'UAV delivery' thing. To me, when companies start talking about crazy stuff like that, it's a major sign that the train has come off the track.
I think Amazon has a lot of flaws in it's retail business model, but the UAV IMO was actually a good sign, showing some innovation. A few years ago, people would have thought Google was crazy to try and photograph every street in North America as well.