Most of us know what it's like to have money problems of some description – all too well, probably.
But there's money problems, and then there's Amazon, which has announced losses of a massive $544m for the three months ending in September.
That equates to losing not far short of $6 million every single day – quite some achievement, I'm sure you'll agree.
So why the big numbers? Well, the dire reception and sales of the Fire Phone no doubt play a big part, but in truth the losses are mainly due to Amazon laying down some serious currency recently on acquiring a handful of other tech firms.
These include $1bn on game streaming startup Twitch, while another $2bn went into the Indian ecommerce market – effectively financed by a large Bank of America loan.
Amazon's Q3 revenues totalled $20.84bn, up 20% on the same period in 2013. That helped hide the pain of probably heaps and heaps of unsold Fire Phones – Amazon's long awaited debut smartphone, which has been panned by reviewers and users alike since its launch in June.
The company admits to having around $83m in Fire Phone inventory on hand, and says it spent around $170m over the quarter setting up distribution and marketing efforts for the Fire Phone.
But it doesn't seem overly bothered, saying only that the company's top brass were “learning from their successes and failures, and would be very selective about what opportunities they pursue in the future”.
However, it seems Amazon isn't expecting all that much to change in the short term: it says it expects even greater losses, $570m to be exact, for the next quarter.
No surprise, then, to see Amazon's stock price taking a 10% hit in after-hours trading yesterday.
Via The Verge