Going Gets Tough for Amazon in Second Quarter
The second quarter loss for amazon.com has been much more intense and uglier than it was anticipated. The stock of the online giant has crashed down more than 10% in the after-hours trading which is leaving the investors worried.
However, Amazon had the revenues reach over $19 Billion mark and they do have a history of pulling back the money that they have lost. They are planning a lot of things in cloud computing, drone distribution, groceries and TV series as a production house. But the loss of market just before their latest launch of new smart phone, Fire, can mean bad for the business. The analysts also believe that this may not have been the best time to launch their new handset when the crowd is riding on the latest iPhone that is supposed to hit the market in September. This and along with mediocre reviews of Fire may have a bad impact on the market of Amazon.
Even their latest offering called Kindle Unlimited that is being offered to voracious readers at $9.99 a month has also not been received that well. The important publishers have not participated with much enthusiasm which has resulted in a low reception for Kindle Unlimited that will not give the readers an access to some of the best sellers. There is a fair chance that the book you do wish to read or listen to may not even be a part of the 6,00,000 titles that Amazon is boasting about.
This may be a tough time for Amazon right now but they do have a tendency to bounce back. It would not be fair to judge the CEO and his ability with one poor quarter.