What a difference a quarter makes
Despite a 23 percent increase in sales to $19.34 billion, Amazon reported a net loss of $126 million, or $0.27 per diluted share, for its fiscal second quarter ended June 30, 2014. That compares to a profit of $108 million in the first quarter, and a loss of $7 million, or 2 cents a share, on revenue of $15.7 billion in the same quarter a year prior. The lesson here is that Amazon isn't afraid to take a loss in order to launch new products and services.
Amazon rolled out its Fire TV and Fire Phone during its fiscal second quarter, along with Prime Music, a subscription-based streaming music service with over 1 million songs available, and Kindle Unlimited , a similar service but for Kindle Books. That's quite a bit to take on in a single quarter.
"We continue working hard on making the Amazon customer experience better and better," Amazon founder and CEO Jeff Bezos said in a statement .
Though Amazon can afford to make multi-product and service investments, the company's stock is taking a beating. It's down by more than 10 percent today, which is largely the result of coming up short of Wall Street's expectations for the second quarter in a row.