Amazon.com, Inc. (NASDAQ:AMZN) released its financial results for the second quarter showing that its net sale increased 23% to $19.34 billion. Its net loss also increased significantly to $126 million or $0.27 per diluted share from $7 million or $0.02 per diluted share in the same period a year ago.
The stock price of Amazon.com, Inc. (NASDAQ:AMZN) plummeted 10% to $322.58 per share during the extended hours trading, around 5:31 in the afternoon in New York.
Amazon.com, Inc. (NASDAQ:AMAZN) said its operating cash flow rose 18% to $5.33 billion. Its operating loss was $15 million compared with an operating income of $79 million in the year-ago quarter. Its free cash flow went up to $1.04 billion for the second quarter.
The e-commerce giant reported a bigger loss in the second quarter due to the fast pace of its investment in new businesses including digital content and same-day delivery. Jeff Bezos, the CEO of Amazon.com, Inc. (NASDAQ:AMZN) said, “We continue working hard on making the Amazon customer experience better and better.”
According to Bezos, the e-commerce giant recently introduced Sunday delivery coverage to 25% of the population of the United States and launched the cross-border two-day deliver for Prime in the European region. The company also introduced Prime Music with more than one million songs, and created three original kids TV series.
Amazon.com, Inc. (NASDAQ:AMZN) also added parental controls to Fire TV with FreeTime, and launched the Kindle Unlimited eBook subscription service.
Furthermore, the e-commerce giant introduced Amazon Zocalo, Tw instances, an SSD-backed EBS volume; Amazon Cognito, Amazon Mobile Analytics and AWS Mobile SDK. The company also started shipping the new Fire Phone to customers in the United States today.
Third quarter outlook
For the third quarter, Amazon.com, Inc. (NASDAQ:AMZN) estimated that its net sales will increased around 15% to 26% in the range of $19.7 billion to $21.5 billion. The e-commerce giant expected to incur operating loss of around $410 million to $810 million.
According to the company, its forecast includes approximately $410 million for stock-based compensation and amortization of intangible assets.