CHART OF THE DAY: Amazon's Growth Is Waning
Amazon reported earnings for its fiscal third quarter of 2014 on Thursday. Revenue hit $20.58 billion, which is a 20% increase year-over-year, but it fell short of analysts' expectations at $20.84 billion. Earnings per share also missed: Amazon reported -$0.95, while analysts were only expecting a loss of $0.74. The company's stock took a hit as a result: Investors know Amazon's revenue is still on the rise, but its growth is slowing down.
Based on company data charted for us by BI Intelligence, the company's growth peaked in the second quarter of 2011, when its year-over-year revenue saw a massive jump of 50%. But the company has made numerous investments, particularly in the last quarter: It's been trying to push its AT&T-exclusive Fire Phone to customers, it spent almost $1 billion to buy the streaming service Twitch, it expanded its Prime Fresh delivery service to New York City, it's spent almost $100 million on original video content (including the critically acclaimed show "Transparent"), and it's also trying to get into mobile payments with its mobile card reader called Local Register. So most of Amazon's profits are going back into the company, hence the not-so-explosive growth.
BI Intelligence
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
- Top temples to visit in India you must visit atleast once in a lifetime
- Top 10 adventure sports across India: Where to experience them in 2024
- Market recap: Valuation of 6 of top 10 firms declines by Rs 68,417 cr; Airtel biggest laggard
- West Bengal Elections: Rift among INDIA bloc partners triggers three-cornered intense contests
- Angel Investing Opportunities