Worsening losses drive Amazon shares downward after results

AMAZON shares plunged in after-hours trading last night, as the firm reported a net loss of $126m (£74.18m), an even worse outcome than analysts expected.

The second quarter results drove the share price down by more than nine per cent in after-hours trading, following a 0.13 per cent boost during the day.

The loss was equivalent to $0.27 per diluted share, compared to $0.02 in the second quarter of last year. The web giant expects another significant operating loss in the third quarter, of between $810m and $410m, much more severe than the $25m drop in the same period last year.

Despite the drop in profit, net sales rose by 23 per cent to $19.34bn during the second quarter of the year, when compared to the same period in 2013.

Amazon chief Jeff Bezos mentioned new ventures in his comments after the results, including accelerated delivery in Europe and the firm’s new phone, but did not address the company’s losses. “We continue working hard on making the Amazon customer experience better and better,” he added.

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