Amazon makes $126m loss, warns of more to come

amazonRetail giant Amazon has reported a $126m (£74m) loss in the second quarter of the year and has warned that sales could slow in the current quarter.

The company has invested heavily in its own hardware, such as the Kindle ebook reader and new Fire mobile phone.

It makes very low profit margins on such devices but aims to benefit from the sale of content to be read, watched and played on them.

A move into buying original programming for its Prime Instant Video service is set to cost $100m third quarter and the firm is also having to invest heavily in its cloud hosting system.

Investors have warned the firm expects to make further losses of up to $810m next quarter – up from a $25m loss in the same period last year.

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