Amazon shares - up nearly 40 percent this year - fall over three percent as the online retail giant reveals a 77 per cent drop in quarterly income despite a jump in retail sales - ending CEO Jeff Bezos's brief reign as the world's richest person. David Pollard reports.
Retail sales jumped for the world's biggest online retailer in the second quarter. Amazon posting revenues at 38 billion dollars - up 25 per cent from a year earlier. But - a rapid expansion is proving costly. A push into areas including video and faster shipping landing it with a 77 per cent drop in quarterly income. It's unlikely to slow the roll out of new services. Amazon just this week announcing a two-hour Prime Now deliveries in Singapore. Last month, announcing a 14 billion dollar bid for Whole Foods Market. That aggressive strategy boosted shares by 40 per cent this year to a record high at just over 1,083 dollars on Thursday. Making boss Jeff Bezos the richest man in the world. Briefly - those same shares shedding over three per cent after the results were announced. But more big costs could be ahead - the Amazon finance chief warning Q3 was generally a period of 'high investment.' The firm even saying it could lose 400 million dollars in operating profit.