Amazon reported a $7 million loss for the second quarter of 2013, as the company continues to sacrifice short-terms profits in favour of long-term growth.
In the past three months, the Seattle-based e-commerce giant invested heavily into warehouses, digital content and its Kindle business and subsequently reported a minor loss despite healthy revenue growth. The company posted net revenue of $15.7 billion, a 22 percent increase over last year’s second quarter.
The results were just below what analysts had expected, but the stock price gave in only slightly following the release.
Follow up:Amazon’s shareholders remain remarkably trustful of CEO Jeff Bezos’ long-term vision. Despite the lack of profits, the company is currently traded at a valuation of almost $140 billion, putting Amazon’s price-to-earnings ratio at outer worldly levels.
Our chart illustrates how Amazon’s revenue continues to soar, while the company fluctuates between miniscule losses and small profits.
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