Amazon announced its Q3 2014 earnings, showing the largest operating loss in company history of $544 million for quarter 3. However, net sales were up 20 percent to $20.58 billion this quarter.
Operating cash flow was also up for the quarter at $5.71 billion, but that still is in the shadow of such a large loss. Amazon’s Q4 guidance warns of another loss in Q4 to the tune of $570 million.
Their Amazon Fire phone has not sold well at all. This means Amazon is having to write off $170m due to the costs and unsold inventory.
Following this announcement, Amazon’s share price dropped 10%.
Not a good day really and at some point it will need to start turning a profit.