“Amazon.com shares tumbled Thursday after the e-commerce giant posted a wider-than-expected $126 million loss for its second quarter despite revenue of $19.34 billion,” Jefferson Graham reports for USA Today. “Amazon CEO Jeff Bezos didn’t address the loss in the earnings release, but mentioned new ventures. ‘We continue working hard on making the Amazon customer experience better and better,’ he said in a statement.”

“Shares of Amazon plunged 10%, to $322.50, in after-hours trading. The company announced its results after markets closed,” Graham reports. “Amazon’s expansionist spending spree is taking its toll. Beyond the $126 million loss, it said it expects to lose up to $810 million in the upcoming quarter — compared with a $25 million loss in the third quarter last year.”

“Forrester analyst Sucharita Mulpuru blamed the loss solely on Amazon’s Prime program, which offers two-day free shipments to customers for $99 a year,” Graham reports. “‘Google, Apple and Facebook invest all the time in innovation, and don’t have losses like this,’ she says. ‘The big difference is Amazon is spending all this money on shipping those orders.’ The costs of free shipping are larger than Amazon expected when it started the program. Amazon, she says, has ‘created a beast they now have to feed.’”

“On Friday, the online retail giant expands into the cutthroat world of smartphones with its first attempt, Fire, joining a crowded market that includes Apple, Samsung Electronics and Microsoft,” Graham reports. “Last week, it also launched an e-book subscription service, Kindle Unlimited, offering access to 600,000 e-books and audiobooks for $9.99 a month. Critics were not kind, noting that most current fare is not included with the service. Reviews for the new Fire haven’t been raves, either.”

Read more in the full article here.

MacDailyNews Take: Looks like investors are finally beginning to grow tired of this money-burning warehouse with a website run by a bald midget with a massive Napoleon Complex. Peddling plastic app-starved pretend iPhones and fake iPads isn’t going to come remotely close to covering your astronomical shipping costs, Jeffie.

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