Amazon misses, slips back into the red with $7 million Q2 loss

“Amazon.com, the world’s largest e-retailer that often straddles the thin line between profits and losses, fell into the red in the second quarter,” Abram Brown reports for Forbes.

“Amazon.com lost $7 million, 2 cents a share, after earning $7 million, 2 cents a share, a year earlier,” Brown reports. “Analysts expected Amazon.com to turn a profit and make 4 cents a share. Revenue increased 22% to $15.7 billion, just meeting analysts’ forecasts.”

Brown reports, “CEO Jeff Bezos, true to his focus on building his company rather than making money, offered no specific reason why Amazon.com struggled in the quarter. What is clear is that the company continues to exist with paper-thin margins. Amazon.com’s operating margin of net sales was a tiny 0.5%.”

Read more in the full article here.

MacDailyNews Take: Hey, Bozos, ask Mikey Dell how making it up in volume goes.

More time focusing on your obviously fragile business, less time whining to the DOJ.

Related article:
Apple beats Street on record quarterly iPhone sales – July 23, 2013

33 Comments

      1. @pete

        yes, it makes perfect sense. that’s what the federal government does everyday. spend more than you take in. things go bad, just spend more. never acknowledge or care about what the problem may be. spend until there is no where to borrow. printing money sounds great, but it is based on someone willing to loan you their real $ (read the top of the $1 bill “federal reserve note” what do you think that means?). chinese, canadians, saudis buy bonds and notes because the US government promises to pay. it is paying back the debt by more borrowing. even bezos is not that bizarro.

        the preceding rant relates to the post because the DOJ is part of the US government. why would you expect them to side with anyone else other than an entity that operates like them. inside the DOJ, they totally don’t understand what motivates apple. they do understand what motivates bezos. pretty simple.

        investors today don’t vote for the success of the company. they vote for making $ on share price. the stock market is not a place to raise capital. it is a cross between ebay and disneyland.

      2. Amazon uses its no profits model to avoid paying corporate income taxes. When they start having to withhold sales taxes, their margins may go further decline even more.

        I recently I ordered 2 iPad cases for $31 plus shipping, but after a promitioal discount and”free shipping” the final PX was $16. No worder the margins are near zero.

    1. It’s worse than that. Despite stretching payables to 73 days (over 10 weeks) and increasing payables by $1.9 Billion, Amazon lost $800 Million in cash. At this rate, which I expect will continue, Amazon will be out of cash in about one year, with a tremendous payables overhang.

      There are only 2 ways to fix this:
      A/ Increase revenue. But how do you do that with a commodity retailer that relies on low price leadership? and,
      B/ Cut expenses. But how do you do that without alienating customer loyalty? (Ask Dell).

      The loss leader Kindle is doing nothing but losing money. It is not driving revenue as it was designed/marketed. Its share continues to shrink into irrelevance.

      At nearly $300 this is a stock about to crash.

  1. Where’s slimon now with is grossly inaccurate comments about that lawsuit (and his lack of mentioning Amazon’s part in it).

    Truly seems that Amazon has been buying its way into its monopoly market share. Amazon’s financials tell an “interesting” story!

    1. Sure, why not? Back before the dot com bubble burst, I bought a ton of $25 DVDs for as little as $5 when all of the deals reel.com was offering were factored in (they were trying to build the biz by losing money).

      Then they went bankrupt and I no longer buy from them.

  2. Apple should “fire sale” all books on iBooks for an extended period…sell them all for 99 cents.

    Advertise it on TV….iBooks books sale, only on iPad/iPhone! Rip the innards out of Amazon ebooks and bookreaders/tablets in the process. Hello gaping hole Amazon net losses that the street didn’t expect to see, bye bye high flying stock price.

    Best $1 billion Apple could spend on “investing” in the longevity of it’s business.

    Pipe dream, I know. But it would be the only real justice served by the recent ebook verdict.

    1. This is EXACTLY the point the court did not get…

      Apple does not set the minimum price at which it can sell books in its iBooks store. The publishers do.

      How an you be convicted of colluding on raising prices if you don’t have control over the minimum prices? Only in the U.S. court system can such a thing happen.

      And Amazon keeps propping up its majority position by selling things at a net loss.

  3. You really think they care about long term investors (bag holders). Of course management has this predetermined sales of their options which they no not the timing of. One day when the clown has finally sold his options or when the curtains finally come off, the pension funds and other clients of the investment house will cry foul and demand the taxpayers bail them out, while the bozos laugh their hearts out.

  4. Well, when everyone there is finished with their gay weddings maybe they’ll work on updating their product photos to what you actually receive in the mail. Down with big companies. Buy from smaller local companies.

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