Amazon hit by surprise loss last quarter, despite 22 percent rise in sales

The retail game is all about scraping a living out of tiny margins, and nowhere is that more evident than in Amazon's latest financial report. The company managed to grow revenue by 22 percent year-over-year between April and June, to $15.7 billion, and yet it confounded analysts' predictions by making a loss of $7 million, versus a $7 million profit in the same quarter last year. Then again, this knock has been attributed to the fact that Amazon is pushing to expand beyond the retail game, by investing heavily in its Kindle business, digital downloads and streaming products, as well as in building a bigger presence in China. This has been the strategy for a while, of course, and it's not the first time the company has been pushed into the red as a result. But Jeff Bezos says that Amazon's top ten bestselling products last quarter were all either Kindles, accessories for Kindles, or digital content for Kindles, which suggests the transformation is steadily having an impact, even if it's proving expensive.