Amazon has reported losses that were heavier than expected in the second quarter of 2014, as the firm spent large amounts in a bid to expand in the smartphone business.
After the close of trading Thursday (July 24th), the online retailer said it lost $126 million (£74 million) between April and June, more than the $7 million it lost in the same quarter last year.
The loss of 27 cents per share was worse than the 15 cents per share loss analysts had expected, according to data compiled by Bloomberg.
Amazon also forecasts third quarter sales of between $19.7 billion and $21.5 billion, which could mean sales growth of as little as 15 per cent – which is also down on previous quarters.
It expects losses to continue next quarter of between $810 million and $410 million, compared with a $25 million-loss during last year’s third quarter.
Amazon has been investing heavily to build up its business, including the launch of its first smartphone – the Fire Phone, which goes on sale in the US today (July 25th).
However, the phone has had many reviews with very little praise, including CNET stating that the handset includes "slightly sub-prime specs" and a battery life that sputters out quicker than the reviewer would like.
Amazon has also been developing digital content including computer games and TV shows, as well as its Amazon Web Services business, which provides computer services and storage for businesses and has been growing very quickly.
"We continue working hard on making the Amazon customer experience better and better," said Amazon's chief executive officer, Jeff Bezos.
Amazon.com Inc lost 11.41 per cent to $317.680 at 09.49 ET today (July 25th) in New York.
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