Amazon reported disappointing earnings today and that sent shares plummeting about 12 percent in after-hours trading. Analysts were ready for a loss, expecting to take a hit of $0.74 per share, but Amazon reported a loss of $0.95 per share. Over the same period last year, there was a net loss of $41 million ($0.09 per share), but this quarter saw a more substantial loss of $437 million.
Buzzfeed Business reports part of this loss was due to a "$170 million charge," as per the investor call. Chief financial officer Thomas Szkutak said this charge was "primarily related to the Fire Phone inventory evaluation and supply commitment costs."
In the third quarter of 2013, Amazon had an operating loss of $25 million. This year, it was $544 million— its biggest operating loss ever. Revenue was slightly off, as analysts expected $20.84 billion and Amazon delivered $20.58 billion.
Net sales, however, were up 20 percent year-over-year from $17.09 billion in 2013, though it was still lower than analysts expected.
CEO Jeff Bezos, however, looked to the future instead of the disappointing quarter. "As we get ready for this upcoming holiday season, we are focused on making the customer experience easier and more stress-free than ever," he said in a statement. He promised a load of new price deals for the holidays, as well as new Kindle products.