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Amazon losses accelerate as firm slides $437m into the red

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By John Glenday, Reporter

October 24, 2014 | 1 min read

Online retailer Amazon’s battle to turn revenues into profits has received a knock after it posted a $437m loss in the third quarter, a rise of $41m over the year before.

The deteriorating financial position fed through into projections for the next three month period, prompting investors to flee and sending its share price crashing by over 10 per cent.

Amazon has expanded aggressively in recent years pioneering a multitude of initiatives from its own smartphone and tablet devices to its Amazon Fresh grocery delivery business in the US.

Despite, or because of, this scattergun approach Amazon has singularly failed to grow profits as expenses rose from $17.1bn last year to £21.1bn this year.

Choosing to focus on the important holiday season instead Amazon founder Jeff Bezos said: “As we get ready for this upcoming holiday season, we are focused on making the customer experience easier and more stress-free than ever.”

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