Amazon.com Stock Slides on Lower Profitability

Profitability finally seemed to be turning a corner at Amazon.com (NASDAQ: AMZN) in 2016, following years of low margin. However, Amazon's recent second-quarter earnings report dashed bulls' hopes of steady profit growth. While revenue jumped 25% year over year, operating profit plunged by 51%.

In this episode of Industry Focus: Consumer Goods, the team drills down on the reasons Amazon's profitability came under pressure last quarter. Amazon is investing as aggressively as ever to keep sales growing. For long-term investors who believe in Jeff Bezos' vision, there's no reason to be worried about this decline in Amazon's margin performance.

A full transcript follows the video.

Source: Fool.com