These two charts show why Amazon's share price just plunged 10%

Investors are getting tired of the ecommerce giant's inability to generate stable profits.

by Rachel Savage
Last Updated: 25 Jul 2014

Amazon’s sales are on an upwards march: net sales jumped 23% to $19.3bn (£11.4bn) in the quarter to the end of June. It’s profits, though, as the second chart shows are positively yo yo-esque, with the ecommerce giant posting a $126m loss, compared to just $7m the previous year.

Investors had been giving Jeff Bezos the benefit of the doubt - when a company is making that much money and still growing speedily, they can bet on a big windfall in the future. But they are clearly getting pretty fed up waiting for Amazon to slow down investing in everything from smartphones to cloud technology (hence the periodidic big losses) and pay a dividend: shares were down more than 10% in pre-market trading today.

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