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Amazon reports strong growth despite $126 million loss last quarter

Amazon Fulfillment Center Opens In San Bernardino

Employees prepare orders at Amazon's San Bernardino Fulfillment Center October 29, 2013 in San Bernardino, California. Amazon's 1 million-square-foot facility in the economically hard-hit San Bernardino County has created more than 800 jobs at the center. Fulfillment centers are where products sold by other vendors on Amazon.com store their inventory. (Photo by Kevork Djansezian/Getty Images)

NEW YORK (CNNMoney) — Investors are familiar with Amazon’s quarterly routine: posting huge sales numbers with little or no profit. But they are not shrugging off the loss this quarter.

Shares plunged 10% in extended trading Thursday after the tech giant reported a larger than expected loss. While sales rose 23%, the company recorded a loss of $126 million, which was even more than analysts had expected. It lost $7 million during the same quarter last year.

It’s easy to see where Amazon has been spending. It rolled out a number of new products and services this year, including Sunday delivery, its Fire TV media streaming device, and its first smartphone, the Fire Phone. It also recently announced an unlimited e-book subscription service for $9.99 per month.

While CEO Jeff Bezos has always been more concerned about the long-term growth than immediate profit, investors have supported his ways. The share price rose by 40% in 2012 and by more than 50% in 2013.

But Amazon stock was already down 10% this year before the company posted second-quarter earnings after Thursday’s closing bell. It also landed in the middle of a heated fight with Hachette, taking criticism for delaying the delivery of some of the publisher’s books.

It expects the same routine next quarter: a rise in sales but further losses.

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