UPDATED 2:55PM: On the day its first smartphone hit the market, Amazon is smarting from a hit it took from investors. The company’s shares plunged a wince-inducing 9.7% today in the wake of Thursday’s disappointing Q2 earning report — losing about $15 billion in net worth in just a few hours. It was the worst performer on the S&P 500, which fell 9.6% today, and Amazon’s worst stock day since October 2011. Shares closed at 324.01, rebounding from an intraday low of 314.76, but continued lower in after-hours trading. UBS analyst Eric Sheridan told CNBC that investors going forward will be looking for a “continuation of growth in [Amazon’s] media business and stickiness of its Prime base.” Bank of America Merrill Lynch analyst Justin Pope said in a research note: “With growth not accelerating, Amazon could become a show-me stock.”

PREVIOUSLY July 24: Shares are down 10.2% in post market trading after the e-retailer reported a far bigger Q2 loss than investors expected. Amazon lost $126M, up from a $7M loss in the period last year, on revenues of $19.3B, +23.2%. The top line was right on target with analysts’ consensus forecast. But the loss at 27 cents a share far exceeded the 15 cent loss the Street anticipated. What’s more, Amazon warns that it could lose as much as $810M on an operating basis in Q3, up from last year’s $25M loss.

The shortfall comes from Amazon’s big investments in new products and services, including video. The company says it plans to spend $100M on original video content in the current quarter, far more than last year or in Q2. Funds also are going to build fulfillment centers, a subscription book service, the Kindle Fire TV streaming box, and its Fire smartphone.

GoodnightJohnBoy
4 months
Hah, for those of us who bought amazon @ $17.00, we don't really care...

“We continue working hard on making the Amazon customer experience better and better,” CEO Jeff Bezos says in the earnings release.