Why Amazon's Quarterly Loss Was Inevitable
The share price of tech giant Amazon (NASDAQ: AMZN) is down more than 30% this year, which is far worse than the S&P 500's 13% decline. A key reason behind its underwhelming performance is that last month Amazon posted its first quarterly loss since 2015.
What investors should remember is that a single quarterly performance is only a snapshot of how a business did over the course of one three-month period. And the reality of Amazon's business is that a quarterly loss was bound to happen sooner or later. Here's why investors shouldn't be too surprised about a loss, and why it doesn't necessarily mean the business is broken or that it has become a bad investment.
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Source Fool.com
