It’s a big day for Amazon, with the release of its Fire phone marking the company’s entry into the smartphone market, the latest symbol of its expansive ambitions in the technology world.
This afternoon, investors will get a new glimpse of the company’s financial picture — demonstrating, once again, Amazon’s ability to run on very small or non-existent profits.
Amazon is expected to post quarterly net sales of $19.3 billion, an increase of 23 percent over the same quarter last year. However, the company is expected to post a loss of 15 cents per share, according to the consensus of analysts polled by Thomson Reuters.
The company’s previous guidance for this quarter predicted net sales between $18.1 billion and $19.8 billion, and an operating loss between $455 million and $55 million.
One big question will be the impact of the Amazon Prime price increase (from $79/year to $99/year) on the company’s membership program. Research this week from Consumer Intelligence Research Partners found that the vast majority of Amazon Prime members — more than 90 percent — still planned to renew their membership despite the price increase. Amazon Prime will also get a boost from the Fire phone, which comes with a free one-year Amazon Prime subscription.
We’ll also be listening for any commentary from execs on the company’s Hachette negotiations, keeping a close eye on the company’s employment figures. Amazon has been growing at a meteoric rate, reaching nearly 125,000 employees as of the end of the first quarter.
Amazon posts earnings after the market closes, and its conference call starts at 2 p.m., available for streaming here.
