Amazon stocks take 10% dive following second quarter loss

Amazon stocks take 10% dive following second quarter loss

Amazon shares tumbled 10% after it reported strong sales and a big loss in its second quarter results.

The retail giant’s net sales increased 23% to $US19.34 billion ($A20.5 billion), compared with $US15.7 billion one year ago – an increase that matched analysts’ expectations.

However, Amazon posted a net loss of $US126 million, or US27 cents a share, compared with analysts’ forecasts of US15 cents a share.

Investors were unsettled by the report, with Amazon’s stock failing around $35, or about 10% in after-hours trading.

In a statement announcing the figures, Amazon chief executive officer Jeff Bezos said the company was working hard to improve the Amazon customer service experience.

“We’ve recently introduced Sunday delivery coverage to 25% of the US population, launched European cross-border Two-Day Delivery for Prime, launched Prime Music with over one million songs, created three original kids TV series, added world-class parental controls to Fire TV with FreeTime, and launched Kindle Unlimited, an eBook subscription service,” said Bezos.

“And today customers all over the US 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.”

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