updated - July 6, 2020 Monday EDT
Amazon had a rough third quarter, reporting a loss of $437 million-higher than analysts ever predicted.
The world's largest online retailer, Amazon, reported a third quarter loss of $437 million (95 cents per share) and a revenue of $20.58 billion, falling below analysts' prediction of 74 cents per share and revenue of $20.84 billion.
Amazon's increasing dependence in their new products and services to boost growth while reporting a huge third quarter loss and narrow profits were reportedly the main reasons why investors are backing out on the brand.
Amazon's stock price dramatically went down 7 precent in morning trading above the 22 percent decline the retail giant's stock has already experienced this year.
According to TVNZ, Amazon has been putting its earnings back to expand and grow into new markets. It launched a smartphone, the Fire recently just this summer and offered a set-top video-streaming device, e-book readers and several tablets this year.
The company has also been investing in Prime, its $99-a-year loyalty program. On top of that, the retail giant also put in grocery delivery services (AmazonFresh) and music streaming and original TV shows exclusively for Prime members.
All those efforts reportedly cost a lot of time and money to materialize, and not all of the products and services Amazon launched returned their initial investment.
The Fire received mediocre reviews because of its pricey price tag have failed to capture buyers.
Looks like Amazon will also be facing rocky holidays this year as it also reported that its fourth quarter revenue to be $27.3 billion, lower than analysts' forecast of $30.9 billion.
The holidays are important for any retailer because that's when reportedly a large part of their yearly profit comes-20 percent in November and December.
Meanwhile, Amazon recently hired 80,000 seasonal workers as it prepares into holiday overdrive and has expanded its Sunday shipping service as well.
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