Amazon.com missed analyst expectations for the second quarter and its outlook was cautious.
Following the earnings report, Amazon (AMZN) shares fell nearly three percent in trading after the closing bell. (Click here to get the latest quote for Amazon.)
"The real story here is around guidance - it was a little bit light from what people were expecting, and the bottom line much lower than what people would have expected," Kerry Rice, an analyst at Needham & Co., said.
"A common theme for Amazon is they're going to spend to build the infrastructure and capacity to deliver the products and services to the consumer that they feel the consumer wants," Rice said. "As long as they grow in the high 20s to 30-percent range year over year, they will continue to spend like that."
For the third quarter, Amazon anticipates revenue of $12.9 billion to $14.3 billion versus Street estimates of $14.1 billion.
The Internet retailer also forecast an operating loss of between $50 million and $350 million for the current quarter. This guidance includes $275 million for stock-based compensation and other items.
Second-quarter net income fell more than 90 percent to $7 million, or one cent per share, from $191 million, or 41 cents per share, in the year-earlier period as it continued to spend and invest in infrastructure.
Revenue rose 29 percent to $12.83 billion, from $9.91 billion a year ago.
Analysts had expected the company to report second-quarter earnings of 2 cents per share on revenue of $12.88 billion, according to estimates from Thomson Reuters.
- Reuters contributed to the report.
More From CNBC