Amazon’s Q2 Financials: net loss 18 times larger than last year
Customers can be happy about all of the money Amazon is investing to make their lives better. They are spending money on more content at no more cost (for example, hundreds of thousands of more songs for Prime Music), they continue to update devices, they are introducing new devices which lets us do things more of the same way in more places (which is easier).
Investors may not feel the same way about it, though.
Let’s take a stand-out figure, according to this
“Net loss was $126 million in the second quarter, or $0.27 per diluted share, compared with net loss of $7 million, or $0.02 per diluted share, in second quarter 2013.”
That’s a big proportional difference: as I mentioned in the subject of this post, it’s eighteen times larger.
However, a loss of $126 million just isn’t that much for a company the size of Amazon.
The big thing, of course, is that we have to believe that this is an extraordinary circumstance and not a trend.
After, all if the losses continued to grow at the same rate, they would lose two BILLION, two-hundred and sixty-eight million dollars in the second quarter of 2015…and then you’d be talking real money.😉
Of course, that’s not likely.
Amazon just introduced a whole new hardware line for them with the
Mine arrived yesterday (I’ll make some comments about it at the end of this post).
That’s a very big investment. It’s not just development: I’ve seen full page ads in magazines, for example, and that’s not a cheap thing to do.
Starting up a new service like
also has significant costs.
So, what did investors think about this?
shows a drop of 9.65% today…which comes with the smell of fear.
Now, that may bounce back, but my intuition is that investors are actually becoming even less secure with Amazon right now.
What does that mean for customers?
I suspect we may go into a “building” year where there aren’t any more radical product launches (that doesn’t mean we wouldn’t get a new Kindle Fire or Paperwhite…but that they won’t launch any more hardware lines).
They need to show that some of these risks are going to pay off. They need to show a record of success for Kindle Unlimited with an indicator of continued success.
They need the Fire Phone to be accepted and to be in a position for growth (the AT&T exclusivity is likely to only be for a year).
Amazon Web Services (AWS) needs to show it is a solid income stream going forward.
None of this concerns me for the viability of Amazon long-term…but we may see them painting the boats rather than launching new ones for a little while.
You can listen to the webcast of the conference call here:
Often the Q&A (Questions and Answers) portion is the best part…there is an index and you can jump right to that, if you want, but I didn’t hear any bombshells in it this time.
I’m actually listening to it right now on my Fire Phone.
I need to use it more until I can give you a real report on it (I’ll use it more over the weekend).
Let’s start out with a few things:
It sounds fine as a phone, I set up my e-mail, texting, and calendars. I was able to import everything pretty painlessly from my Samsung Galaxy S4 (which I hate to give up). I was already on AT&T, and they have a wireless transfer app that moves things between the two phones.
I did have one weird thing. Since I’d ordered the phone on one phone number on the account (which was eligible for an upgrade), but wanted it to work on another phone line, I had to call AT&T. The rep there was great, by the way! Surprisingly good.
The negative was that I needed the number on the SIM card on the new phone…and I could not get it to come out of the phone! I actually ended up calling Mayday on my
It was kind of funny, because I had the AT&T rep on speaker phone, and that person could hear the Mayday person.
However, try as I might, I couldn’t get the SIM out. Fortunately, I found the number on one edge of the box for the phone…but I still haven’t gotten th SIM card out.
As to the “dy-per” (what I call Dynamic Perspective)…so far, it’s cool, but I wouldn’t feel like I need it. When I’m looking at the sleep screen, I can tilt the phone to see more of the scene. That’s a little hard to describe…it’s like when you were a kid, and you put your face right up to the mirror and were surprised that you could see things “in the mirror” that weren’t directly in front of it…suggesting it was actually showing you another world. Oh, was that just me?😉
The Carousel, though, looks really busy. I have to check on how to maybe eliminate some of the data.
For example, if I swipe over to the messaging icon, the most recent messages show below that icon. Same thing with e-mail, the Help menu, Settings…it’s sort of like “customers also buy” on the Kindle Fire HDX…but there is a lot of text.
I haven’t seen it react to where I’m looking, yet, outside of dyper..and I’d really like to be able to scroll my book by looking! I may have to Mayday that (the Help search is unimpressive).
Flicking left and right does bring up some useful things…but it’s so far hard to predict when it will work or what it will show. I think that will come in time (I haven’t used it for a total of two hours of actual interaction time yet). There are people who still don’t right-click…you have to use it to get used to it.😉
While you would think that this would integrate super well with Amazon’s stuff, I haven’t found Prime Music yet…despite looking for it for a few minutes. I can find my other music, but not Prime.
The other big feature that make the phone a stand-out is Firefly, the “real world recognition” functionality.
I pointed it at a superhero sticker today…it thought it was looking at a thermos with that superhero.
I pointed it at a can of Dust-Off which I had bought from Amazon: it first linked me to an inhalant abuse website that was on the can, then I repointed it at the SKU (the zebra stribe Stock Unit number) and it got it then.
It also got a toner cartridge package…again, by pointing it at the SKU.
I think at this point, the features are ahead of the functionality: I suspect there will be some killer apps for both Firefly and dyper, but casual use of the phone at this stage may not reveal their power.
What do you think? Do you have specific questions about the Fire Phone? Will Amazon raise consumer prices to make lower losses for investors? Feel free to let me and my readers know by commenting on this post.
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