Amazon sales soar but profit plunges as it ploughs money back into long-term plans
San Francisco — Internet colossus Amazon on Thursday reported its profit shrank in the recently ended quarter, despite surging sales as it poured money into growth. The US-based company said net sales increased 25% from a year earlier, to $38bn, but profit plunged 77% from a year ago to $197m. Investments, depreciation of equipment, share buys and other expenses ate into revenue in a familiar pattern of Amazon putting long-term growth ahead of short-term profit. "Our teams remain heads-down and focused on customers," Amazon founder and CEO Jeff Bezos said in a release. "It’s energising to invent on behalf of customers, and we continue to see many high-quality opportunities to invest." Amazon has been expanding from its original mission as an online retailer to a diversified tech firm with operations in cloud computing, online video, computer hardware and artificial intelligence. The company also recently announced plans to acquire US grocer Whole Foods, which could help Amazon expan...
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