The people with the smile on the box had no reason to smile when their company, the online retail giant Amazon, yesterday posted third-quarter results today, reporting its first loss in nine years. Even as revenue increased by 27 percent annually, Amazon lost $274 million during the third quarter on net sales of $13.8 billion, up from $10.9 billion a year earlier.
In the year-ago quarter, Amazon reported a net profit of $63 million. Total operating expenses increased from $10.8 billion to $13.8 billion. Amazon attributed the loss to its investment in online deal site LivingSocial.
It’s also understandable that a low-margin, high-volume nature of Amazon’s content and books businesses affects earnings. The company is also vulnerable to exchange rates, online shopping growth and fluctuations in consumer spending. And in announcing its first-ever loss, Amazon even took jabs at Apple’s iPad in – wait for it – the official press release…(...) Read the rest of Amazon reports first loss in nine years, cites iPad mini in release