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Available On Air Stations Posts 2Q Loss, Higher Revenue

Ross D. Franklin
Associated Press is reporting a loss in the second quarter as higher revenue was not enough to make up for rising operating expenses. Inc. said Thursday that its loss was $7 million, or 2 cents per share, in the April-June quarter. That's down from earnings of $7 million, or 1 cent per share, a year ago.

Revenue rose 22 percent to $15.7 billion from $12.83 billion. Analysts, on average, were expecting earnings of 5 cents per share on revenue of $15.73 billion.

Amazon’s been spending a lot of money. It’s struck deals with media companies like Viacom to license popular TV shows for its digital streaming service. And it’s been building out its cloud computing infrastructure to compete with companies like Microsoft, IBM and Google.

Morningstar analyst R.J. Hottovy says that’s why Amazon’s reporting a loss even though sales grew. He says the company’s forecast for next quarter rattled some investors.

"The question’s always been whether or not you can monetize this business, and with the company guiding to another loss in the third quarter just keeps those questions coming," Hottovy said. 

Hottovy says long term, Amazon’s strategy makes sense. He says cloud computing and digital media offer bigger profit margins compared with Amazon’s regular retail business. But those profit margins won’t come until after the investments have been made. 

Amazon is forecasting revenue of $15.45 billion to $17.15 billion for the current quarter. Analysts were expecting $16.97 billion. And the company predicted an operating loss between $440 million and $65 million.

Amazon's stock fell 3 percent to $294.26 in extended trading after the results were released.

The Associated Press (“AP”) is the essential global news network, delivering fast, unbiased news from every corner of the world to all media platforms and formats. On any given day, more than half the world’s population sees news from the AP. Founded in 1846, the AP today is one of the largest and most trusted sources of independent newsgathering. The AP considers itself to be the backbone of the world’s information system, serving thousands of daily newspaper, radio, television, and online customers with coverage in text, photos, graphics, audio and video.
In July 2017, Ashley Gross became KNKX's youth and education reporter after years of covering the business and labor beat. She joined the station in May 2012 and previously worked five years at WBEZ in Chicago, where she reported on business and the economy. Her work telling the human side of the mortgage crisis garnered awards from the Illinois Associated Press and the Chicago Headline Club. She's also reported for the Alaska Public Radio Network in Anchorage and for Bloomberg News in San Francisco.