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News Link • Business/ Commerce

Amazon plows ahead with high sales and spending; profit plunges

• http://www.reuters.com, Jeffrey Dastin and Rishika

The world's largest online retailer posted second-quarter revenue of $38 billion, up 25 percent from a year earlier. The breakneck growth stood in contrast to the fate of many brick-and-mortar rivals, who have struggled to find their footing as more people shop online.

Yet Seattle-based Amazon posted a 77 percent drop in quarterly income, and even said it could lose up to $400 million in operating profit during the current quarter. Beyond reflecting retail's notoriously thin margins, the forecast signaled Amazon would invest heavily to maintain its dominance.

Shares - up nearly 40 percent this year - fell 3.2 percent to $1,012.68 in after-hours trading. The company had earned 40 cents per share instead of $1.42 as analysts had expected, according to Thomson Reuters I/B/E/S.

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