Bad news for Amazon stockholders.
Amazon.com (Nasdaq:AMZN - news) on Tuesday reported a 58 percent drop in second-quarter net income as a severed partnership with Toysrus.com and higher technology investment spending cut into profits.
The company's stock fell 10 percent following the announcement.
That technology investment shouldn't be a big deal since that is a one time thing but that toysrus.com thing may leave them flatfooted. They need to be a player in the online toy space before Christmas but probably won't be able to compete effectively with Wal-Mart and Toys-R-Us. They need to ramp up a toy selling arm that rivals already have entrenched and that could hurt them.
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