Humberto Manzano Jr. delivers a pallet of goods at an Amazon.com fulfillment center in Phoenix in this file photo.(Photo: Ross D. Franklin AP)
NEW YORK (AP) - Amazon's stock fell Thursday after the world's largest
online retailer reported third-quarter results below Wall Street's
expectations, including a large loss related to its stake in online
deals service LivingSocial.
Amazon.com (AMZN) posted a loss of
$274 million, or 60 cents per share, in the July-September period.
That's down from earnings of $63 million, or 14 cents per share, a year
The latest quarter's results include a loss of 37 cents
per share related to Amazon's stake in LivingSocial. Without the charge,
it still would have lost 23 cents per share, worse than analysts
Revenue grew 27% to $13.81 billion, from $10.88 billion, also falling short of analysts' expectations.
Analysts surveyed by FactSet, on average, were expecting a loss of 7 cents a share on revenue of $13.91 billion.
Amazon said its $199 Kindle Fire HD tablet is its best-selling product worldwide, but as usual, it did not give sales figures.
approach is to work hard to charge less. Sell devices near breakeven
and you can pack a lot of sophisticated hardware into a very low price
point," founder and CEO Jeff Bezos said.
Amazon has a larger version of the Kindle Fire HD out next month.
results come two days after Apple introduced a smaller iPad, the Mini,
for $329. In its press release announcing the results, Amazon included a
list trumpeting its high-definition Kindle Fire as cheaper than the
iPad Mini and with more features. However, Apple's iPad has a much wider
selection of third-party apps.
At one point, Amazon's stock was
off $6.42, or 2.9%, to $216.50 in after-hours trading before recovering
some of that loss. The stock had closed down $5.57, or 2.4%, at $222.92
in the regular trading session.