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Amazon takes a plunge
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July 22, 1999: 12:59 p.m. ET
Traders send online retailer's shares spiraling on ambitious spending plans
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NEW YORK (CNNfn) - Shares of Amazon.com Inc. plunged Thursday as traders fled on fears the company plans to continue to invest heavily in new ventures even as its revenues missed some expectations.
Shares of the online retailer tumbled 17-3/8, or nearly 14 percent, to 108-1/16 shortly after noon. The company traded as low as 106-9/16 before recovering slightly.
Amazon.com (AMZN) reported a pro-forma net loss from operations of 51 cents per diluted share during the second quarter, far greater than the 12 cents per share it lost a year earlier.
The company's revenue stream nearly tripled to $314 million, but that was still below some analysts' estimates. Meanwhile, the company substantially boosted spending to promote its Web site and expand its distribution line, a trend Amazon.com Chairman Jeff Bezos promised will continue.
"For the rest of 1999, we expect to invest more heavily than we have in the past," he said.
Several analysts changed their outlooks for the company's stock in light of the announcements, including Bear Stearns analyst Scott Eherns, who cut his rating to "attractive" from "buy." 
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Amazon.com
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