Amazon Reports $7 Million Net Loss in Q2, Stock Falls Below $300

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By Seth Fiegerman2013-07-25 20:31:20 UTC

Amazon's second quarter earnings came below Wall Street estimates, causing the stock to dip by as much as 4% in after hours trading.

The ecommerce giant posted a net loss of $7 million or -$0.02 per share for the June quarter on revenue of $15.7 billion, falling short of consensus estimates for earnings per share of $0.05 on revenue of $15.73 billion.

Amazon and its CEO Jeff Bezos are known for operating on razor thin margins to keep the prices of product and services low, but it's still unusual for the company to post a net loss for the quarter. In the same quarter a year ago, Amazon posted a net profit of $7 million for the quarter, or $0.01 a share.

Amazon's stock recently crossed the $300 threshold for the first time in its history as the company has maintained its strong grip on ecommerce while battling competitors like Apple and Google in hardware and Netflix in streaming entertainment content. The stock enjoyed a nice boost recently after a court ruled against Apple in an e-book pricing case.