Amazon stock falls as profit declines 77%

Justin Solomon  CNBC

Most of you know the Bill Gates story: his father was a wealthy lawyer in Washington state and Gates himself was a genius.

Still, work is work, and with Amazon seemingly hurtling toward a future where they control the international system of currency which determines the totality of life on this planet, now's as good a time as any to get in on the ground floor. Beyond reflecting retail's notoriously thin margins, the forecast signaled Amazon would invest heavily to maintain its dominance.

Amazon said it earned $197 million, or 40 cents per share, in the second quarter, down from $857 million, or $1.78 per share, a year ago.

The company yesterday forecast a potential quarterly loss for the first time in two years.

Investors have put increasing faith in Bezos to keep Amazon growing by entering new categories such as groceries and appliances and expanding abroad.

According to Amazon, it is.

Reuters could not independently verify the wealth of Bezos or Microsoft Corp's co-founder Gates. But over the years Bezos has deftly steered Amazon into hardware, cloud services, music and streaming shows.

Amazon has been hugely successful with their Amazon Launchpad allowing startups to focus on their products by supplying them with the tools that they need to meet customers' expectations.

But we are not done.

Amazon founder Jeff Bezos on Thursday became the world's richest person, as a jump in the share price of the U.S. tech giant enabled him to overtake Microsoft founder Bill Gates, Forbes magazine estimated.

Is Amazon Prime a major component of why its stock P/E is so high?

Revenue from Amazon Web Services, its profitable cloud-computing division, increased 42 per cent to US$4.1b. The specter of Amazon's disruption now hangs over a dizzying array of industries.

Outside the office Jason is a lover of science fiction and the outdoors, and an amateur squash player at best. Economist Cary Leahey says it's paper money.

And Amazon will be spending even more to buy Whole Foods if the deal goes through, as expected.

The third quarter "is generally a high investment period for the holiday", he said.

Amazon's stock fell more than 2% in after hours trading Thursday as the company reported a June quarter profit that fell well below Wall Street estimates. Costs for fulfillment, marketing and technology all rose.

Specialist in antitrust, Law School professor, Michael A. Carrier said Amazon "should be between worried and complacent" when it comes to antitrust action.

Olsavsky declined to discuss detail of the company's strategy for upscale grocer Whole Foods Market Inc, which Amazon said last month it planned to buy for $13.7 billion.

The pair of tweets: "I am very disappointed in China".

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