Amazon Investments Cool Third Quarter Growth
October 24, 2014 at 5:06 AM (PT)
AMAZON was expected to lose 7 cents a share in the third quarter, but after the retailer warned of heavy investments, analysts moved their projections to losses of 74 cents a share, according to a story about the company's financial projections in today's NEW YORK TIMES.
After the market closed YESTERDAY (10/23), AMAZON reported that it lost even more, amounting to 95 cents a share. Meanwhile, Q3 revenue turned out $260 million less than expected, and the company said it might lose money again in the fourth quarter, a traditional profit center for retailers, both brick and mortar as well as online.
The company said revenue would rise between 7 and 18% in the fourth quarter. Last year's q4 revenue rose 20% from 2012.
During the third quarter, AMAZON was engaged in a public dispute with book publisher HACHETTE over pricing of e-books,which has sparked complaints from authors and negative publicity. Subsequently, books, movies and music increased a mere 4.8% from last year, the slowest growth in more than five years and a decline from the 13.4% increase last quarter.
For the all-important fourth quarter, AMAZON said it stood to lose as much as $570 million and make as much as $430 million. In 2013, it made $510 million in the fourth quarter.