Amazon Q2 Losses Larger Than Anticipated

Amazon Q2 Losses Larger Than Anticipated

Online retailer loses $0.27 per share on revenue of $19.34 billion, stock drops after hours

Amazon was expected to lose $0.15 per share for Q2 — the actual loss came to $0.27 a share. But look at the bright side: there's still free shipping for orders over $35.

Analysts were spot-on with their revenue estimate of $19.34 billion, however — a 23 percent sales increase year-over-year.

The negative earnings come from a net loss of $126 million for the quarter ended June 30, 2014. For the same three-month period last year, Amazon reported a loss of $0.02 per share.

Also read: Facebook Bests Estimates, Stock Hits All-Time High

Amazon stock had closed up slightly — an increase of $0.47 per share or 0.13 percent — on Thursday. After the earnings were released, however, the stock dropped significantly.

At the time of this writing, AMZN was trading down more than $26 per share on the late exchange.

Also read: IMAX Predicts Big Things for ‘Guardians of the Galaxy’ as Q2 Earnings Increase

“We continue working hard on making the Amazon customer experience better and better,” Jeff Bezos, founder and chief executive officer of Amazon.com said in the earnings press release. Then he touted a ton of products that his company recently introduced, including Prime Music and the Kindle Unlimited subscription.

Another of those is the Amazon Fire phone, to which Bezos commented, “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.”