Amazon’s gigantic operating loss sends shares sliding 10% after hours

CAMPBELLSVILLE, KY - JUNE 10:  Amazon employee Heather Redman packs the new Kindle DX, Amazon's 9.7" Wireless Reading Device for shipment at the warehouse on June 10, 2009 in Campbellsville, Kentucky. (Photo by John Sommers II/Getty Images)

Amazon had warned investors to expect a big loss in the third quarter and they got one on Thursday. The company saw a net loss of $0.95 per share on revenues of $20.58 billion. And Amazon had an operating loss of $544 million.

That was worse than what analysts had been expecting — a loss of $0.74 per share on revenues of $20.84 billion. Amazon shares were down almost 10 percent in after-hours trading as of 4:20 PM ET.

The operating loss fell within the range that Amazon included in its guidance last quarter, when it projected a loss between $810 and $410 million.

For the fourth quarter of 2014, which includes the holidays, Amazon is projecting revenues between $27.3 billion and $30.3 billion, with operating income ranging from -$570 million to $430 million.

Amazon is holding an investor call at 5:00 PM ET and we will be on the call.

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