Amazon Reminds Market That Dominating E-Commerce Has a Price

  • Second-quarter expenses increased faster than revenue
  • Spending to continue in preparation for holiday shopping

The Takeaways From Amazon's Second-Quarter Earnings

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Amazon.com Inc. reminded investors that luring shoppers away from stores and dominating the cloud-computing industry isn’t cheap.

The company on Thursday forecast a potential quarterly loss for the first time in two years. Amazon said it’s boosting spending on new warehouses to meet growing e-commerce demand, data centers for its Amazon Web Services division, video programming to keep customers engaged and gadgets like the Echo line of voice-activated speakers to stay on the cutting edge of the emerging smart-home market.