Amazon.com posts first quarterly loss since 2003

Amazon.com Inc, the world’s largest online retailer, reported revenue that missed estimates and posted its first quarterly net loss since 2003, dragged down by weakness at LivingSocial.com, which it partly owns.

The third-quarter net loss was $274m (€212m), or 60 cents a share, compared with net income of $63m, or 14 cents, a year earlier, the Seattle-based company said. Sales rose 27% to $13.8bn, compared with analysts’ average estimate of $13.9bn, according to data compiled by Bloomberg.

Amazon’s expanded lineup of Kindle devices to challenge Apple in the tablet market — expected to reach $63.2bn this year, according to researcher DisplaySearch — are facing competition from new machines from Microsoft and Google. Amazon’s sales growth slowed to 37% in Sep from 41% in Aug, ChannelAdvisor said earlier this month.

“We’ve seen a little bit of moderation in September and some more trouble” in the global economy, said Daniel Kurnos, an analyst at Benchmark Co in Boca Raton, Florida.

The shares fell as much as 8.4% to $204.17 in extended trading after the report. extended trading. The stock had lost 2.4% to $222.92 at the close in New York, and had gained 29% so far this year.

On an operating basis, the third quarter loss was $28m.