Amazon Loses Net $126M in Revs; Still Plans $100M for Original Video

/ Jul 25, 2014

AmazonInstant

Right after Amazon mentioned its plans to spend around $100 million on pilots for original, digital series, their stock started to drop. At this point, it’s down nearly 10%.

This chart from Yahoo Finance says it all. Though it’s hard not to jump to conclusions that link the stock drop and CFO Tom Szkutak’s Thursday statement about the company’s massive expenditure plans ($100 million is an indisputably big number), there could be a variety of contributing factors.

Screen Shot 2014-07-25 at 1.32.58 PM

For example, the earnings report also mentioned a net loss of $126 million in the last quarter, Amazon’s biggest in two years.

That noted, it says a lot about the health of the online video market if Amazon is still willing to invest so much in original video content for the web in light of a recent loss in capital. It sends the message that digital video is important for a company’s growth in the current environment, and companies like Amazon believe it’s the key (or at least one of the keys) to staying competitive in the online space. Though investors may not see things in the same light right now, Amazon’s efforts towards Netflix-level acclaim continue to advance.

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