Stunned by loss, investors dump Amazon [The Times-Tribune, Scranton, Pa. :: ]
(Times-Tribune (Scranton, PA) Via Acquire Media NewsEdge) July 27--Amazon.com struggles
Investors knocked Amazon.com Inc. down a notch in trading Friday after the online retailer shocked them with a second-quarter loss of $126 million, twice what analysts forecast.
Its stock price closed last week at $324.01, about 10 percent less than its previous Friday close of $358.66 as Amazon chose to focus on boosting services such as Prime instead of showing a profit.
Amazon introduced Prime Music, a new service to members offering unlimited, ad-free access to more than a million songs. It also added more original content through Prime streaming video.
"We continue working hard on making the Amazon customer experience better and better," said Jeff Bezos, founder and CEO of Amazon.com, in a statement.
The Seattle-based company also recently revealed its Fire phone; reviewers were unimpressed.
Amazon stock is off 21 percent from its 52-week high of $408.06. Many analysts kept a "Buy" rating for Amazon, but reduced the price target.
In its second-quarter earnings report, Amazon said revenue rose to $19.34 billion, up 23 percent from $15.7 billion in the same quarter a year ago.
Amazon has a distribution facility outside Hazleton employing more than 1,000.
-- CHARLES SCHILLINGER
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