Amazon's profit fell 27 times

Amazon has problems: the company’s net profit in the second quarter of 2012 fell by 96% compared to the same period last year. 

So, we continue the financial topic. According to Vedomosti, despite the increase in operating profit in Q2 2012 ($12.83 billion) compared to the results of Q2 2011 (from $9.9 billion), Amazon’s net profit fell from $191 million to a completely ridiculous $7 million.

However, according to analysts, it is not worth worrying (or rather, hysterical) yet, because the decrease in net profit is not due to a drop in interest in Amazon services and products.

The fact is that the company’s management went, roughly speaking, all-in, investing a significant part of the funds in the development and, probably, in the promotion of the new Kindle Fire (recall, it is expected that a whole line of devices under this brand will appear on the shelves of the United States this fall). In addition, the company is constantly expanding its network of its own centers in North America, and is also going to enter the international market soon. 

Whether she will succeed is a separate question.  

Write a comment...
Related news