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NEW YORK — Shares of Amazon.com Inc. took a hit in premarket trading Friday after the online retailer posted second-quarter earnings laden with heavy operating costs that surprised investors.
Amazon's net income did grow 45 percent, but operating expenses grow almost as fast and per-share earnings fell almost a dime below the expectations of most analysts.
The Seattle company said it hired 2,200 people during the quarter to help handle growth.
Jefferies analyst Youssef H. Squali called the quarter's results "mixed," noting that consumer demand was strong but that Amazon's investments are pressuring earnings and margins over the short term.
That said, Squali kept a "Buy" rating "for investors who can be patient." He called Amazon's strategy "sensible."
However, he did lower his target price to $140 from $151.
Shares of Amazon.com Inc. fell $14.40, or 12 percent, to $105.67 in premarket trading.
