The online retailer on Tuesday posted a 73 percent drop in third-quarter profit and saw a dramatic decline in its operating margins, reports the Wall Street Journal.
Amazon's stock also fell by 12 percent in after-hours trading to $198.98 after closing at 4 p.m. at $227.15.
Amazon's finance chief, Tom Szkutak, defended the company's spending, claiming that it is necessary to "keep pace with its strong growth."
"We're investing in a lot of capacity," including on shipment centers and capacity for cloud storage business and supporting content such as video streaming, Mr. Szkutak said in the Journal report.
And despite the posted loss, it's not all bad. Net sales are up to $10.88 billion from $7.56 billion a year ago, writes Newer.
Szkutak is keeping his chin up, predicting that Amazon's investments will pay off: "Once customers purchase a Kindle and are carrying around this really massive selection at their fingertips, they're buying more content."