Amazon had already warned investors that they were going to lose money in the third quarter but no one expected that the e-commerce giant would post a whopping $437 million in net loss.
During the same period last year the company lost $41 million. Amazon also warned that they were going to lose even more money during this quarter. The projected net loss will be $570 million.
With that in mind, nobody seemed to care about the fact that revenue increase 20% to $20.6 billion. Investors punished the company, the stock was down over 10% in after-hour trading.
Amazon invested a lot in the Fire Phone, however it has not been as successful as planned and the company had to cut the price down from $199 to $1 in order to get some volume which has had a negative effect on the profitability.
Amazon shares are down about 10% in pre-market trading which means we are almost sure to see the stock at a 52 week low.