Amazon revenue beats; shares jump
Internet retail giant Amazon.com reported quarterly revenue that beat expectations and a quarterly loss that met forecasts on Thursday as the company expanded aggressively and made inroads into overseas markets.
After the earnings announcement, the company's shares rose in extended-hours trading. (Click here to get the latest quote for Amazon.)
The company's net loss dropped to $41 million, or 9 cents per share, from a loss of $274 million, 60 cents per share, the year-earlier period.
(Read more: Amazon stock heading to $400: Stiefel analyst)
Revenue increased 24 percent to $17.09 billion from $13.81 billion a year ago.
Analysts had expected the company to report a quarterly loss of 9 cents a share on $16.77 billion in revenue, according to a consensus estimate from Thomson Reuters.
For the crucial holiday fourth quarter, Amazon projects revenue of $23.5 billion to $26.5 billion. This midpoint is below analysts' current revenue forecast of $25.89 billion.
Amazon is trying to turn itself from an online retailer into a broader technology company offering gadgets like tablets to consumers and cloud computing services to corporations and governments.
The evolution has entailed big investments in technology, content from videos to music, and all while building distribution centers across the United States and expanding in competitive overseas markets such as China.
It is spending billions of dollars on this expansion, which has taken a toll on earnings. But investors believe the move will pay off as spending tapers and margins expand.
During the quarter, the company's operating margin as a percentage of worldwide net sales improved to negative 0.1 percent percent from negative 0.2 percent the year-ago quarter.
Shares in the company have gained 30 percent this year. It is now valued at 131 times 2014 earnings, among the highest in the market.