Amazon Q3 loss widens to $437 million; sales up 20% to $20.58 billion

Seattle --The red ink got worse at Amazon in its third quarter as the Internet giant reported a net loss of $437 million in the third quarter, worse than analysts expected, compared with a net loss of $41 million in the year-ago period.



Net sales increased 20% to $20.58 billion in the quarter ended Sept. 30, up from $17.09 billion in the year-ago quarter. The metric was slightly lower that the average estimate from analysts, who forecast $20.84 billion, but in line with the company’s own forecasted sales range.



Amazon in the third quarter invested in numerous initiatives, including the acqusition of popular videogame tips and tricks site Twitch Interactive for $970 million.



Looking ahead, Amazon expects net sales between $27.3 billion and $30.3 billion for the fourth quarter, short of Wall Street's forecast of $30.89 billion.



It also provided a wide range for its operating income -- between a loss of $570 million and an profit of $430 million.