Amazon shares slump as spending hits growth
Shares in Amazon.com slumped as much as 9.8pc to the lowest price in six months after increased spending on new services limited profit growth last quarter.
Chief executive officer Jeff Bezos is continuing to pump money into warehouses (above) to speed shipments and programmes, including grocery delivery, to fuel future growth.
Expenses rose 23pc during the quarter, limiting profit to 23 cents a share, according to a statement. It was in line with analysts' forecasts but the stock fell 9.4pc to $305.46 (€220) in New York after trading opened.
Mr Bezos is pouring cash into expanding Amazon's business at the expense of profits. The Seattle-based company is adding new services like a TV set-top box for streaming movies and TV shows.
Amazon indicated spending wouldn't decelerate anytime soon, with a forecast for an operating loss of $55m to $455m for the current quarter.
Net income was $108m, up from $82m a year ago. Total operating expenses were $19.6bn, rising from $15.9bn a year ago.