Many investors may be losing patience with Amazon.com’s (Nasdaq: AMZN) current money-losing strategy.
On Thursday, shares of Amazon.com tumbled nearly 15 percent, falling 18-7/16 to 107 one day after the company reported a second-quarter pro forma net loss of $82.8 million. Amazon.com plans to continue spending freely to expand and build its brand, and it looks like more and more investors are wondering whether the company is ever going to turn a profit or at least watching the company from the sidelines.
Fed chairman Alan Greenspan’s cautious comments did little to calm investors on Thursday, when Internet stocks were hit hard overall. However, Amazon.com’s big second-quarter loss still stands out when you consider that America Online reported second-quarter earnings of 13 cents a share — two cents better than the average estimate of analysts surveyed by First Call — on Thursday.