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. Last Updated: 07/27/2016

Amazon.com's Buy Up Spells Losses Despite Revenue Rise




SEATTLE -- Amazon.com Inc., the Internet's biggest retailer, said that revenues nearly tripled in the second quarter, but losses deepened as expected due to heavy spending on new businesses.


Nevertheless, the online retailing pioneer said it would split its highflying stock for the second time this year.


For the second quarter, Seattle-based Amazon.com reported Wednesday a pro forma net loss of $82.8 million, or 51 cents per share, compared with a pro forma net loss of $17.0 million, or 12 cents per share, a year earlier. Net sales rose 171 percent to $314.4 million from $116 million last year.


The results were in line with the expectations of Wall Street analysts, who on average estimated a net loss of 51 cents per share, according to First Call Corp.


But investors, who perhaps had been hoping for better results, sold Amazon.com stock in after-hours trading, where it lost $3.44 to end up at $122. The stock had gained $5.31 to close at $125.44 in Nasdaq trading before the earnings report was issued.


Amazon.com had disclosed in April that it expected losses to accelerate as it stepped up its pace of investments and acquisitions, and chief executive Jeff Bezos said the company would continue to invest more heavily than it had in the past for the rest of this year and into 2000.


"We have to make the most of this window of opportunity," he said in a conference call with analysts, that was broadcast over the Internet.


"This means laying the foundation to be a multibillion-dollar revenue company serving tens of millions of customers."


Just last week, Amazon.com added toys and electronics to its menu of product offerings, which also includes books, music, videos and auctions.


Bezos said he had been "shocked and pleased" by early sales in the two new categories, which should boost revenue growth in the current quarter.