Amazon redeems itself, rides high on mobile internet shift

By IVCPOST Staff Reporter

Jul 29, 2013 08:02 AM EDT

In the shift from web to mobile internet, there were gainers and there were losers. However, there was one internet company who initially lost but now redeemed itself.

The shares of technology giant, Amazon, recovered from initial weakness. This was after the online retail giant surprised investors and other observers with a US$7 million loss when only a modest profit was expected.

The results indicated that Amazon was putting its funds into marketing, technology, and content. This was in an effort to expand its offerings and promote its line of tablets, the Kindle. Although these investments were cutting into the company's short-term profits, it was positioning Amazon for global growth, according to analyst Daniel Kurnos of Benchmark.

"Amazon has also been quietly building out its digital library of ebooks, TV shows and movies, and boasts content agreements with all of the major networks and studios across its three distribution platforms," Kurnos said.

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