Amazon sales rise but investors concerned over higher than expected losses – Baidu beats expectation with a strong second quarter. – Lenovo introduces Google Glass look-alike glasses.
Daily technology two-minute roundup on RTHK Three’s prime morning business and finance show Money For Nothing.
Amazon customers might love the self-proclaimed “Everything store” but Wall Street is questioning the company’s spending strategy. The company reported losses of $126 million, much higher than analyst’ average estimate of $66.7 million. This is inspite of a 23 percent rise in sales.
This year, Amazon launched a smartphone, an Apple TV rival, a cloud storage service and a music streaming device causing concern that the company was stretched too thin.
Amazon’s lack of profits are in stark contrast to Alibaba Group – which disclosed in a prospectus in May – profits totaling $2.8 billion on revenue of $6.5 billion for the nine months ending on Dec. 31. Amazon on the other hand, earned $274 million on sales of $74.5 billion for all of 2013.
Bloomberg contributor Paul Kedrosky says profit didn’t seem to matter in the past… but it does now. [CLIP]
Chinese search engine giant Baidu posted better-than-expected second quarter results with net income rising to 3.55 billion yuan in the three months ending in June. The company’s performance got a boost as advertisers increased spend to reach mobile users.
Baidu shares rose rose 2.1 percent to $204.27 in extended trading. So far this year, the stock has climbed 15 percent.
Lenovo debuted (dehbyood) a smart glasses prototype yesterday in a move aimed at attracting developer and hardware manufacturers.
Not much is known yet about the functionality of the glasses, which bear an uncanny resemblance to the Google’s Glass product, but the company said more details would be announced in October.
The glasses are just one of many products form Lenovo’s NBD platform, as the company targets connected devices that form the so-called internet of things.