Internet colossus Amazon on Thursday reported its profit shrank in the recently ended quarter despite surging sales as it poured money into growth.
The US-based company said that net sales increased 25 percent to $38 billion (roughly Rs. 2,44,047 crores) when compared to the same period last year, but that profit plunged 77 percent from a year ago to $197 million (roughly Rs. 1,265 crores).
Investments, depreciation of equipment, share buys and other expenses ate into revenue in a familiar pattern of Amazon putting long-term growth ahead of short-term profit.
“Our teams remain heads-down and focused on customers,” Amazon founder and chief executive Jeff Bezos said in a release.
“It’s energizing to invent on behalf of customers, and we continue to see many high-quality opportunities to invest.”
Amazon has been expanding from its original mission as an online retailer to a diversified tech firm in cloud computing, online video, computer hardware and artificial intelligence.
The company also recently announced plans to acquire US grocer Whole Foods, which could help Amazon expand in that sector.
Bezos noted recent company moves including launching a new version of home digital assistant Echo; upgrading Alexa artificial intelligence, expanding its streaming video offerings outside the US, and even adding to the company’s air cargo fleet.
Amazon shares slipped some three percent to $1,012.15 in after-market trades that followed the release of the earnings figures that fell short of Wall Street expectations.
The report comes as Bezos briefly dethroned Microsoft…