Amazon is seeing a dismal year as the company reports the biggest quarterly net loss it has seen in years. The online retailer is set to lose $40.5 million at the end of the year as prospects for the forth quarter are underwhelming the expectations of analysts. The company is set to make its largest loss in 12 years according to Bloomberg analysts. The downturn in Amazon’s prospects has pushed down company stocks by as much as 9.4 percent making the annual stock performance down by 21 percent.
Some are blaming the company’s poor performance on the strategies of CEO Jeff Bezos. Under Bezos the company has poured money into new endeavors keeping profit margins low. Other factors are also at play. Competition has mounted in the field of online retail with Chinese company Alibaba overtaking Amazon as the worlds largest e-commerce company. With the relatively high strength of the dollar versus other currencies, Amazon has pushed out lower holiday sales projections due to the effects of changes in the exchange rate. The Ebola scare has also affect the economy negatively with investors and consumers skittish about the future of the disease.
The e-commerce goliath is not the only online-based company seeing losses. Pandora Media Inc. has seen a 9.4 percent loss as a result of its failure to maintain user growth. Netflix has faced the same problem this month with their stocks having dipped earlier this month. Despite the company’s shaky position, it seems that Amazon execs will be standing firm on the road they have chosen for the company.
“We have been in investment mode because of the opportunities we have in front of us,” Chief Financial Officer Thomas Szkutak said. “There’s still lots of opportunities in front of us, but we know we have to be cautious about which opportunities we pursue.”
Read More – Amazon CEO Bezos Faces Worst Season As Losses Mount (Bloomberg, Spencer Soper)