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Is Amazon Trying To Do Too Much?

NEW YORK (TheStreet) -- This morning's announcement about 3D printing and Amazon's (AMZN - Get Report) new online 3D Printing Store underscore the fact that Amazon is still continuing to expand, no matter what investors think. 

B. Riley & Co. analyst Scott Tilghman said while the company's recent earning numbers were disappointing, he thinks Amazon shows it's willing to try different ideas - and that's a good thing. "Amazon is innovative in its approach to building its business and is willing to be a leader rather than a follower," Tilghman said in a phone interview. He said Amazon is in the process of shifting some investments from domestic to foreign initiatives. (Today, Amazon also announced it was opening five new warehouses in India.)

AMZN 3D Print

Last week, Amazon announced net sales were up 23% from the previous quarter but the company reported a net loss of $126 million or 27 cents per share. Analysts polled by Thomson Reuters had expected a loss of 15 cents a share. Shares fell nearly 11% on Friday, following the results, and were off another 2% to $317.97 in Monday trading.

Amazon blamed the second quarter loss due to the large number of new investments it had made. On the earnings call, CFO Tom Szkutak said, "The increase in capital expenditures reflects additional investments in support of continued business growth consisting of additional capacity to support our fulfillment operations and investments in technology infrastructure including Amazon Web Services."

Amazon also gave third-quarter guidance that fell short of estimates, as it expecting net sales in the third quarter to rise to between $19.7 billion and $21.5 billion, but continued investments will cause the company to have an operating loss between $410 million and $810 million, up from $25 million in the same quarter last year. Analysts surveyed by Thomson Reuters expect the company to lose 66 cents a share in the third quarter on $20.88 billion in revenue.

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