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Amazon Is Tanking This Morning

Jul 25, 2014, 18:02 IST

Business InsiderThis sign is in Amazon's main building. It tells you all you need to know about the company.

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After last night's earning report, investors are fleeing Amazon this morning.

The stock is down 11% in pre-market trading.

Amazon's earnings report fit a familiar pattern: Revenue met expectations growing 23% on a year-over-year basis, but it had a $126 million loss, which was much worse than expected.

On top of that, it forecasted a gargantuan $410-$810 million loss for the next quarter. Analysts were only expecting a $10 million loss next quarter, according to Bloomberg terminal information.

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For years Amazon has grown sales at the expense of the bottom line, and for years investors have been okay with it. It seems like their patience is currently running out.

On the earnings call, Amazon's CFO said the company plans to invest $100 million in original shows.

Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
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