- Amazon's loss margin is widening, causing its stock prices to drop 5% in Q2.
- The online retail giant increased spending on marketing by 40% in Q2, contributing to the losses.
- The biggest area of spending for Amazon was on products and media, including TV shows and movies to stream on its subscription service.
Hopefully, Amazon has long enough foresight that the spending on marketing and media will eventually return the retailer to the black. Sometimes you have to look out far ahead to see why marketing spending is so important. In Amazon's case, the marketing was spent on new product launches — something that is necessary if you want the products to sell.