SEATTLE (AP) — Shares of Amazon.com Inc. fell Thursday after the e-commerce retailer reported a deeper-than-expected second quarter loss as expenses outpaced a surge in revenue.
Amazon has long focused on spending the money it makes to grow and expand into new areas. In one of its most high-profile moves, Amazon is introducing its own smartphone, the Fire, which starts selling Friday.
The company has been heavily investing in services for its loyalty program, Prime, which costs $99 a year, and includes free two-day shipping on many items. It has added a grocery delivery services and music streaming for Prime Members as well as offering original TV shows and apps. It also expanded Sunday deliveries and recently began offering a set-top video streaming box.
Amazon doesn't disclose how many Prime members there are but it said it added more Prime members in the second quarter than it did in the second quarter last year, despite the fact that it raised the cost for Prime by $20 earlier this year.
Investors are usually accepting of Amazon's thin profit and focus on strong revenue growth. But not this quarter.
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