Amazon’s Spending Spree Sends Expenses Up and Stock Plunging
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Amazon.com Inc. plunged as much as 10 percent after Chief Executive Officer Jeff Bezos told investors that his spending binge isn’t slowing.
Bezos is pouring cash into warehouses for faster shipments, a grocery delivery service and a TV set-top box to compete with Netflix Inc. and Apple Inc. in streaming. Expenses rose 23 percent during the quarter, limiting profit to 23 cents a share, according to a statement yesterday, in line with analysts’ projections. The company forecast an operating loss for the current quarter of $55 million to $455 million.