Business, Inc. (AMZN) Reports Wider Than Expected Losses, Stock Plummets

on, Inc. (NASDAQ:AMZN) plummeted by close to 13% in post market hours trading when the company announced results which were lower than the street estimates. The company announced a wider than expected loss which is being seen as a huge negative by the street., Inc. (NASDAQ:AMZN) reported a loss of $0.94 per share as against estimates of $, Inc. (AMZN) Reports Wider Than Expected Losses, Stock Plummets

The company reported revenues of $20.58 billion which was a 20% year-on-year growth but lower than the consensus estimate of $20.84 billion. Thus,, Inc. (NASDAQ:AMZN) missed both on the top line and bottom line estimates., Inc. (NASDAQ:AMZN) also revised its forward guidance and now expects revenues between $27.3 billion – $30.3 billion. The company also reported a wider than expected operating loss and a similar bleak Q4 guidance.

On the earnings call, the company confirmed a widely held belief that their flagships phone, the Amazon Fire was a bit of a flop., Inc. (NASDAQ:AMZN) reported that it had taken a $170 million hit and had unsold inventory topping $83 million at hand., Inc. (NASDAQ:AMZN) made huge investments over the last quarter. It bought video game streaming service Twitch for $1 billion. Released Local Register, to compete with Square.  Expanded its Amazon Fresh Service to cities like New York and also released its first original content series called Transparent  (which received rave reviews from critics).

The company added that its Amazon Web Service had grown by close to 37 percent which was a huge positive and, Inc. (NASDAQ:AMZN) believes it would continue to remain one of the biggest revenue generators for the firm going forward. Over the years,, Inc. (NASDAQ:AMZN) investors have bought the theory preached by Jeff Bezos about short term losses for overall long term growth, but the current 12% sell off yesterday, seems to show that investors are running out of patience.

Discloaure: None

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