Amazon is incurring losses

The largest online retailer Amazon.com Inc. reported on the financial results of the third quarter.  For the first time in the last 4 years, the company suffered losses. However, these indicators do not run counter to Amazon’s development strategies.

According to the results of the reporting period, the company’s losses amounted to $274 million (or $0.60 per share). Amazon CFO Thomas Szkutak attributes such financial losses to investing in long-term prospects.

Recall that at the moment Amazon does not receive any profit from the sale of its new devices. The company’s policy is to increase the user base, putting it “on the needle” of its own ecosystem: first we sell the device at a small price, then we make you pay for the content.  

For the next quarter, the company forecasts losses in an even larger amount – about $490 million. “We should not count on a large return on investment in the near future,” Thomas Shkutek said to calm investors. “But the company’s long—term prospects are very, very good.”