Amazon's Q2 earnings plunge 58%

NEW YORK: Amazon.com's second-quarter earnings nosedived by nearly 58% as the online retailer focused on giving customers cheap or free shipping deals and investing in new technologies, agencies report.

Amazon.com shares fell more than 12% in after-hours trading as the online retailer also said it planned to invest heavily in its new toy sales strategy and cut prices on many products.

For the three months ended June 30, the company reported a profit of $22 million, or $0.05 per share, compared with earnings of $52 million, or $0.12 per share, in the same period a year earlier. In a conference call, Amazon.com CFO Tom Szkutak said net income was hit by approximately $10 million because of the termination of a contract with Toys R Us, the prominent Fifth Avenue, New York-based children goods store.