Amazon shares fall 7% after wider than expected loss

Amazon shares dropped over 7% after the bell as the firm posted a net loss of $437m, more than 10 times bigger than the $41m loss it posted 12 months ago and over $100m worse than estimates, while sales rose 20% to $20.6bn, slightly below analysts' forecast.

The Seattle-based firm's forecast sales and profit for the holiday quarter fell short of analysts’ expectations, as group chief executive Jeff Bezos's strategy came under scrutiny.

Bezos's plans have focuses on spending on products such as the Kindle Fire tablets and smartphone, as well as investing on a network of distribution centres and original programming, but investor fears that sales growth will no longer offset the firm's lack of profit.

Revenue for the current period will be $27.3bn and $30.3bn, the online retailer giant said in a statement on Thursday, while profit excluding some items will range from a loss of $570m to a gain of $430m.

According to data compiled by Bloomberg, analysts on average had forecasted sales to be at around $30.9bn and profit excluding items of $460.5 million,