As also was the case at Netflix, revenues were up, in Amazon's case, up 44 percent to $10.9 billion.
Orders for the new Kindle Fire apparently are substantially above what Amazon had projected, so Amazon is building millions more units than it originally expected.
Amazon also is ramping up investments in the backend infrastructure to support all the digital media it expects people will want to consume on their Kindles, especially their Kindle Fires. Amazon spent $769 million on “technology and content” in the quarter, up 74 percent from a year ago.
Sometimes companies have to take risks. Sometimes they have to invest. Investors don't like the quarterly fluctuations.