Amazon projected to lose 40 million in 2014

[Liberal_in_LA]

As Amazon heads into the lucrative end-of-year shopping period, the company yesterday posted its biggest quarterly net loss since at least 2003, according to data compiled by Bloomberg. It also forecast sales and profit for the fourth quarter that missed analysts’ projections. That puts Amazon on track to lose an estimated $40.5 million for the year, which would be the company’s largest annual loss for at least the past 11 years, according to data compiled by Bloomberg. The only other annual loss for Amazon since 2003 came in 2012.

In response, investors pushed Amazon shares down as much as 13 percent in extended trading yesterday. For the year, the stock is down 22 percent, compared with a 5.5 percent gain in the Standard & Poor’s 500 Index. If that performance continues, the company is set for its worst annual stock decline since 2008, during the depths of the financial crisis.

http://www.bloomberg.com/news/2014-10-24/amazon-ceo-bezos-faces-season-of-worsts-as-losses-mount.html

-_------

Pattern - big companies kill off smaller ones, then they tank

[Barack_America]

1. I don't think their phone went anywhere.

Could have to do with that.

[arcane1]

3. Good point. They did seem to be over-extending themselves.

I've done business with them but at the same time I try to avoid it whenever possible.

[NaturalHigh]

2. That surprises me.

I don't follow the stock market or any of that at all, but I thought Amazon was pretty strong.

[dixiegrrrrl]

4. There have been signals of problems.

Their big push for more Prime members, and the lawsuits about their strangling certain publishers have been in the news for some time now.

[NaturalHigh]

5. We're Prime Members...

or I guess I should say my wife is. I fully understand the problems people have with Amazon, but I love their video streaming service. Prime membership gets us a lot of stuff for free.

[jmowreader]

6. They haven't turned a profit in all the time they've been in business

[NaturalHigh]

7. Seriously?

I've never claimed to be any sort of business man, but how have they gotten so big and lasted so long without turning a profit?

[Luminous Animal]

8. Investors hoping to ultimately drive out all the competition. It's a predator model and why I

refuse to buy anything from Amazon (and a host of other businesses that practice the same or similar model).

[Liberal_in_LA]

9. so similar to walmart? price low until competitors die off?

[Luminous Animal]

10. Yep.

[hfojvt]

11. that's crazy

no wonder they are closing warehouses.

I didn't lose nearly that much money with MY bookstore.