Amazon reports quarterly loss, so of course share price is up

Welcome to the wacky world of Amazon.

Amazon, the company which loves to make no profit, has made no profit. In its quarterly results, released today, the company has revealed it lost $7m for the months of April to June, down from a profit of $7m for the same three months in 2012. That's compared to total revenue of $15.7bn for the quarter, up by 22 per cent year on year.

Of course, this being Amazon, the company's stock is actually 1.3 per cent higher than it was at the close of trading yesterday. Immediately after the news was released, it fell to a low of 299, having closed at 303.4 the day before; but since then it's risen inexorably, and it's now at 307.8. That's because, to quote Matt Yglesias, the Slate blogger who was cited by Amazon CEO Jeff Bezos in a letter to shareholders, "Amazon, as far as I can tell, is a charitable organization being run by elements of the investment community for the benefit of consumers". The company's owners seem a unique group of people on Wall Street: those who don't actually want to make any money.

Of course, that's not actually particularly likely. Instead, the operating loss probably explains the moves we've seen in the last month or so to tighten up margins at the company. First prices started to rise on small-press books, then the company re-instated delivery charges; it now looks like that was less a desire to start earning profit, and more a realisation that margins had dropped too low for even a company like Amazon.

But while margins are low, revenues are up, up, up. Which means the company's primary goal – of becoming the biggest in the world, profit be damned – is ticking along nicely. As for what happens when they do, well, do we really care? We've all got such cheap hardbacks and CDs, it's almost not worth it.

A man walks through an Amazon warehouse. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Brexit has transformed Nicola Sturgeon into a defender of the status quo

First Minister Nicola Sturgeon is saying the right things, but she may not be able to deliver.

Since 2014, Scotland has been split between "neverenders" who constantly agitate for another vote on independence, and those who complain of referendum fatigue.

This latter emotion appeared to be in the ascendancy during the EU referendum last week, when Scottish voters failed to turn out in large enough numbers to push the Remain vote over the 50% threshold. 

And First Minister Nicola Sturgeon has framed her arguments accordingly. 

Speaking on the Andrew Marr Show, the Scottish National Party leader portrayed herself as battling for the status quo and declared "independence is not my starting point". 

Describing the process of leaving the European Union as "deeply damaging", she said: "The status quo we voted for doesn't exist."

Sturgeon said there was "no vacuum of leadership in Scotland" and added: "My priority is to seek to protect Scotland's interests in uncharted territory."

As well as redefining Scottish independence, Sturgeon is attempting to redefine the rules of the debate. Quizzed on whether she could actually take a unilateral approach to negotiations, she claimed: "The reality is there are no rules, there is no precedent. What will happen from here on in is a matter of negotiation."

Batting away reports that Brussels would not want to sit down with her, she again outlined plans to meet with EU institutions over the coming weeks. 

There is no doubt the First Minister has captured the zeitgeist in Scotland, the most Europhile part of the UK. A full 62 per cent of voters opted to remain in the EU, compared to the UK average of 48.1 per cent. 

But even as she vows to protect the status quo, Sturgeon may find the practical details of "protecting Scotland's interests" are a stumbling block. 

She was unable to say much more about the currency question apart from suggesting it was a "moral issue", and that the borders question would affect Northern Ireland as well. 

During the Scottish referendum, Sturgeon and her colleagues tried to play down the prospect of land borders and an adoption of the euro. Whether Scottish voters' attachment to the EU could include such impositions remains to be seen.