E-commerce giant Amazon’s profit dropped 77% to $197 million (Rs 1,265 crore) in the April-June quarter, even as its revenue increased by 25%, Reuters reported on Friday. Amazon also said it could lose up to $400 million (Rs 2,569 crore) in operating profit during the July-September quarter.
Amazon attributed the slash in profit to heavy investments and hiring of new employees. “Q3 is generally a high investment period,” Chief Financial Officer Brian Olsavsky said. He added that their video content along with Amazon Prime membership has helped the company retain subscribers, and persuade those who held a free trial to opt for a paid subscription. “Our video content spend will continue to grow, both sequentially and quarter over quarter.”
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