Amazon.com suffers a big setback at the stock exchange

Amazon.com had just posted lower second-quarter earnings and also went on to cut its outlook for the year. The company said that they are increasing investments in its toy business and are planning to offer more discounts on offered products.

This has taken its toll on the stock of the company as it fell down by around 18.4 percent to $27.41 in early trading.

The company had forecasted operating income for the year in a range between $310 million and $440 million. This is down from their earlier forecasted figures of $390 million to $520 million.

Amazon.com recently suffered a minor setback when Toys “R” Us prevailed in a lawsuit against them enabling them to run their stores independently. This requires them to invest more in this particular segment for growth.