Amazon Faces Profit Pressure: Honeymoon Over?
Amazon.com's sales were up 23% in its first quarter of 2014, but it seemed to be profits that its stockholders were looking for this time around. Shareholders had previously been able to ignore the fact that they were paying a premium for a stock in a company that had skimpy or no profits at all. Instead, they could point to the healthy rate of growth that Amazon kept displaying. But profitability seemed to rear its head in the stock market's reaction to this year's first quarter. Amazon's shares were down nearly 10%