Amazon’s shares slip after its says it expects operating profit to fall
Bengaluru/San Francisco — Amazon.com forecast an unexpected dip in operating profit for the current quarter, sending shares down more than 4% due to concern about the cost of investments, including new warehouses and video content. The world’s largest online retailer also reported lower-than-expected fourth-quarter revenue and missed Wall Street targets for its closely watched cloud computing unit. The Seattle-based company is spending heavily to take greater control of package delivery and to expand its video service around the world. Key to its plan is to entice sign-ups for Amazon Prime, its $99/year shopping club, which has led to users buying more goods, more often. "The story is an investment story," said Amazon chief financial officer Brian Olsavsky on a conference call with reporters, noting "stepped-up" spending levels had continued into 2017. GlobalData Retail analyst Anthony Riva warned of profit erosion. "Low cost and fast delivery are a fundamental part of Amazon’s appe...
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