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Profits plunge, but Amazon ploughs on

Friday, July 28, 2017 - 01:11

Amazon shares - up nearly 40 percent this year - fall over three percent as the online retail giant reveals a 77 per cent drop in quarterly income despite a jump in retail sales - ending CEO Jeff Bezos's brief reign as the world's richest person. David Pollard reports.

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Retail sales jumped for the world's biggest online retailer in the second quarter. Amazon posting revenues at 38 billion dollars - up 25 per cent from a year earlier. But - a rapid expansion is proving costly. A push into areas including video and faster shipping landing it with a 77 per cent drop in quarterly income. It's unlikely to slow the roll out of new services. Amazon just this week announcing a two-hour Prime Now deliveries in Singapore. Last month, announcing a 14 billion dollar bid for Whole Foods Market. That aggressive strategy boosted shares by 40 per cent this year to a record high at just over 1,083 dollars on Thursday. Making boss Jeff Bezos the richest man in the world. Briefly - those same shares shedding over three per cent after the results were announced. But more big costs could be ahead - the Amazon finance chief warning Q3 was generally a period of 'high investment.' The firm even saying it could lose 400 million dollars in operating profit.

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Profits plunge, but Amazon ploughs on

Friday, July 28, 2017 - 01:11