Comment on Amazon's loss makes holidays a question mark

Amazon's loss makes holidays a question mark

The world's largest online retailer reported a wider third-quarter loss than analysts expected and gave a disappointing holiday forecast. Investors are increasingly irked by Amazon's strategy of investing heavily in new products and services to spur revenue growth while reporting quarter after quarter of losses or thin profit. The company's splashy launch of its Fire phone was quickly followed by mediocre reviews and a steep price cut to entice buyers. Amazon said it took a charge of $170 million related to "inventory evaluation and supplier commitment costs" for the Fire, although it did not give further details. "The market was looking for more in terms of revenue and operating income and the fourth-quarter outlook," said Morningstar analyst R.J.

 

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