Amazon business performance status is currently the world’s largest online store disappointing and made anxious investors. In its financial statements in the second quarter of 2014, an American company is loss of USD 126 million.
Amazon posted revenue of USD 19.34 billion, up 23% from the prior year period. But they are still losing money because profit margins are thin and overly aggressive entry into new business areas with large investments.
Amazon invests heavily in hardware products include mobile phones and tablets with Fire. They argued in the short term it will be a loss, but optimistic made a profit in the long run. Even so, investors began to worry.
“Making frustrated when they spend money kept in each quarter,” said Michael Snanlon, one of the shareholders Amazon quoted by Reuters on Sunday (07/27/2014).
Amazon recently introduced a smartphone called Fire Phone with a sales price of USD 649. Unfortunately, Fire Phone responded negatively by many media. Amazon video content was less successful. So Amazon’s business strategy is questionable.
“There are many things that they do that is questionable,” said Tuna Amobi, an analyst at Capital IQ. Amazon was expected to be more cautious in investing. Moreover predicted, they would still lose money in the next quarter.