Despite an impressive 27 per cent increase in third quarter sales, the firm’s investment and capital expenditure programme cancelled out $13.8bn of sales to incur a bottom line loss equal to 60 cents a share.
This time last year the firm made $63m of profits.
Amazon, which yesterday put its Kindle Fire HD device on sale in the UK, reported a $169m balance sheet loss related to LivingSocial, an online coupon deal service.
Amazon poured $175m into LivingSocial nearly two years ago, but the book value of its investment dropped in the third quarter, leading to a loss equivalent to 37 cents per share.
The firm said the next quarter would fare better, with net sales expected to be between $20.3bn and $22.8bn. This equates to growth of between 16 per cent and 31 per cent compared to the fourth quarter of 2011. Income is expected to be as high as $310m or as low as a $490m loss.