Amazon Profit Falls 73%, Company Forecasts Loss for Q4

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Amazon stunned the business world this afternoon with the announcement that third quarter profit had fallen 73% despite net sales rising 44% during the same period. The discrepancy was explained as an increase in spending on new products such as the Kindle Fire, due to be launched next month.

Profits for the quarter were announced at $63 million, compared with $231 million during the same period a year earlier. Shares fell 19% in late trading after the announcement, with investor confidence further shaken by the company forecasting an operating loss of up to $200 million in the fourth quarter of the year despite the holiday season and Kindle Fire launch.

MORE: Kindle Fire Predicted to Sell 5M at Launch, May Outsell iPad 2?

Graeme McMillan is a reporter at TIME. Find him on Twitter at @Graemem or on Facebook at Facebook/Graeme.McMillan. You can also continue the discussion on TIME’s Facebook page and on Twitter at @TIME.

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