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Amazon Making More Profit-Killing Moves

Amazon is spending tens of millions on new streaming content, but it hasn't shown the ability to turn that into a profit, which is weighing on the stock.

By Travis Hoium – Jun 7, 2013 at 1:07PM EST

Amazon.com (AMZN +2.02%) recently licensed 250 seasons of TV shows from Viacom (NASDAQ: VIA) in an effort to beef up its streaming business and add more members to Prime. But Netflix (NFLX +1.53%) has proven that it's extremely difficult to make money with streaming, and Amazon adds the cost of two-day shipping as well. 

Fool contributor Travis Hoium thinks this just adds to Amazon's challenges and that margins won't see any improvement in the near term. 

Read Next

About the Author

Travis Hoium
Travis Hoium is a contributing Motley Fool stock market analyst covering solar energy, technology, and growth stocks. Before The Motley Fool, Travis was a mechanical engineer at 3M and founded a virtual reality company. He holds a bachelor’s degree in mechanical engineering and a master’s degree in business administration from the University of Minnesota.
TMFFlushDraw
X@travishoium

Stocks Mentioned

Amazon Stock Quote
Amazon
NASDAQ: AMZN
$211.71
(+2.16%)+$4.47
Netflix Stock Quote
Netflix
NASDAQ: NFLX
$92.31
(+1.53%)+$1.39

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