October 24, 2014
Operating Loss of $544 Million, Stocks Drop 10 Percent
A delivery made by Amazon Thursday left shareholders shaken and resulted in a steep decline in the company’s shares.
A 10 percent drop was witnessed on the market after the Internet commerce company released its third-quarter results. And while the company’s logo looks similar to a smile, the numbers were nothing to be overly happy about with a reported loss of $437 million, or 95 cents per share.
The figures are a stark contrast to last year’s third quarter loss of $41 million, reported The Wall Street Journal.
“As we get ready for this upcoming holiday season, we are focused on making the customer experience easier and more stress-free than ever,” Jeff Bezos, founder and CEO of Amazon.com, stated in a press release.
“In addition to our already low prices, we will offer more than 15,000 Lightning Deals with early access to select deals for Prime members, hundreds of millions of products across dozens of categories, curated gift lists like Holiday Toy List and Electronics Holiday Gift Guide, new features like #AmazonWishList, and a great new lineup of products like Kindle Voyage and Fire HD Kids Edition. And if you order your gifts on AmazonSmile, we’ll donate a percentage of your purchase price to your favorite charity.”
Bezos failed to address the reported loss and made no mention, in the release, of his company’s $544-million operating loss. That, too, is up in comparison to the same quarter in 2013 when the loss was $25 million.
Part of Amazon’s failure to see impressive — or even positive figures may be linked to some poor choices this year including the launch of its Fire smartphone. The device was brought on to the market as an attempt to tackle Apple’s popularity.
The move was a waste of Amazon’s time and money with many consumers failing to dial up the Smartphone.
“The challenge will be in their ability to focus the selection of products around the needs of the market since it’s impossible for Amazon to carry even a fraction of their online inventory in an actual store,” Michael Dill, Match Marketing Group’s managing partner, told USA Today.
W. Brice McVicar is a staff writer for SiteProNews.