Amazon.com shares fell further following a much larger-than-expected quarterly loss due to major investment in new businesses, including digital content and consumer electronics.<br /><br />Revenue jumped 23 percent in the quarter but it posted a net loss of $126 million (94 million euros) as heavy investing hit its bottom line. <br /><br />The company’s first ever smartphone, the Fire, has just started shipping in the US. <br /><br />The handset features a number of “gimmicks” – such as 3D effects and an object scanner linked to its online store – but reviewers criticised its battery life and a lack of popular apps. It is also available only on one network there – AT&T.<br /><br />The phone is part of the effort by the biggest online retailer in the US to take on major technology rivals including Apple, Google and Netflix.<br /><br />New products and businesses unveiled this year include a subscription book service, new digital content for its Prime online video service, a TV streaming-box as well as the Fire smartphone.<br /><br />Chief Financial Officer Tom Szkutak admitted its investments were “certainly impacting short-term results” but added Amazon has a “tremendous amount of opportunities”.<br /><br />The company is spending more than $100 million (74.5 million euros) on original video content in the third quarter, a substantial increase compared to last year and the second quarter, Szkutak said.<br /><br />“We’re going to continue to invest on behalf of customers with the understanding that long-term has to come,” he said during a call with reporters. “We’ll obviously be looking to get great returns on investor capital and high amounts of cash flow.”<br /><br />Investors remain wary of betting on its long-term growth at the expense of little to no profit.<br /><br />with Reuters
