Why are Amazon's (AMZN -10.3%) operating income and margins diving? Ramping Kindle production is...

|By:, SA News Editor

Why are Amazon's (AMZN -10.3%) operating income and margins diving? Ramping Kindle production is one factor (the devices are loss leaders), but the company's long-term investments are a bigger one. As Erick Schonfeld notes, Amazon's Q3 spending on "technology and content" rose 74% Y/Y, and its spending on "fixed assets" doubled. (transcript)