Amazon’s stock has had a rough day.

The e-commerce and cloud giant’s stock is down by almost 11 percent in after-hours trading after it reported that it lost $126 million in the second quarter of 2014, or 27 cents per diluted share. Compare that to net loss of $7 million in the same quarter last year, or 2 cents per diluted share. Analysts expected losses of 15 cents per share.

Amazon reported strong sales growth in the quarter, up 23 percent to $19.34 billion, compared with $15.70 billion in second quarter 2013. But the sales didn’t translate into strong bottom-line earnings. Not by a long shot.

The company reports swinging down to an operating loss of $15 million in the second quarter of this year, compared with operating income of $79 million in second quarter 2013. But this shouldn’t come as a huge surprise, as throughout its history Amazon has always focused on accelerating products and traffic, not necessarily earnings.

VB Transform 2020 Online - July 15-17. Join leading AI executives: Register for the free livestream.

Amazon’s cost of sales was 69 percent of revenue for the quarter, down slightly from 71 percent in the year ago quarter.

Amazon spent $911 million during the quarter on marketing, or 4.7 percent of revenues, compared to 4.1 percent a year ago.

The company isn’t feeling very bullish where next-quarter guidance is concerned. Amazon expects net sales of between $19.7 billion and $21.5 billion, or to grow between 15 percent and 26 percent compared with third quarter 2013.

It expects losses to widen even further, with operating losses of between $810 million and $410 million in losses, compared to $25 million in third quarter 2013. This guidance includes approximately $410 million for stock-based compensation and amortization of intangible assets, Amazon said.