Amazon.com Inc forecast an unexpected dip in operating profit for the current quarter, sending shares down more than 4 percent due to concerns about the costs of investments including new warehouses and video content.
The world´s largest online retailer also reported lower-than-expected fourth-quarter revenue and missed Wall Street targets for its closely watched cloud computing unit.
The Seattle-based company is spending heavily to take greater control of package delivery and to expand its video service around the world. Key to its plan is to entice sign-ups for Amazon Prime, its $99-per-year shopping club, which has led to users buying more goods, more often.
“The story is an investment story,” said Amazon Chief Financial Officer Brian Olsavsky on a conference call with reporters, noting “stepped-up” spending levels have continued into 2017.GlobalData Retail analyst Anthony Riva warned of profit erosion.