Everyone’s favorite e-commerce company today announced its Q2 2012 earnings. Amazon reported $7 million in net income for the quarter, a year over year loss amounting to a 96 percent decrease. Net sales had a much better outcome, as the company reported a 29 percent increase over Q2 2011, which pulled in an incredible $12.83 billion. Simply put, the Seattle-based company only manage to score an operating profit of $107 million, down a bit from the $197 million it got last quarter.
The Kindle Fire and Amazon’s Prime service was the star of the earnings call, as Amazon CEO Jeff Bezos said, “Amazon Prime is now the best bargain in the history of shopping — that is not hyperbole.”
That being said, the future looks bleak, as the company expects Q3 net sales to grow by at least 19 percent year-over-year, arriving somewhere between $12.9 billion and $14.3 billion, with a projected operating loss of $50 million to $350 million. These numbers can’t always be sustainable; the company really needs to hit big on the new Kindle Fire, and potentially introduce a new product, like say, a smartphone perhaps?