Amazon stock falls as profit declines 77%

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The outlook underscored the high cost of Amazon's business model, which delivers big sales gains and ploughs a chunk of that money back into the company by hiring workers, expanding its footprint and launching new products.

Amazon's stock fell more than 2% in after hours trading Thursday as the company reported a June quarter profit that fell well below Wall Street estimates.

The global business hurt the company's overall performance, pulling down the net profit by 77 per cent on year to $197 million. In the last few months, we launched Echo Show (our newest Echo device with a video screen), introduced Amazon Channels in both the United Kingdom and Germany, launched four new Fire tablets, expanded Amazon Fresh to Germany, launched Prime Now in Singapore, hired more than 30,000 new employees, launched more than 400 significant AWS features and services, migrated more than 7,000 databases using AWS Database Migration Service, and held our third annual Prime Day - signing up more Prime members than ever before. Gates, who is 61, has been No. 1 for 18 of the past 22 years; he has stepped down from his former Microsoft chairmanship and now devotes more time to the charities that have received over $30 billion from him in recent years.

Amazon Prime Video recently launched Inside Edge - the first of its planned 18 Indian original series. Amazon has committed to investing $5bn in India and earlier this year said it would take on commerce in the Middle East by acquiring Dubai-based Souq.com.

In addition to his huge holdings of Amazon.com stock, Bezos also personally owns The Washington Post corporation news and founded the space technology company Blue Origin. Analysts estimated US$40b. Analysts had expected $931m, according to FactSet StreetAccount.

Indeed, investing in faster shipping and video has become a refrain of sorts for the company.

Last month, Amazon announced a blockbuster deal to buy Whole Foods for $13.7 billion. The company doesn't disclose the number of Prime subscribers.

Revenue from Amazon Web Services, its profitable cloud-computing division, rose 42 per cent to US$4.1 billion.

Sales of warehousing, packaging and other logistics services Amazon provides for e-commerce merchants increased 38 per cent to US$7b.