Hmm, the AMZN after hours trading shows them to be UP after this news. This headline seems to be verifiably false.

Net revenue is gross (total) revenue minus returns and any other negative revenue. (Expenses have nothing to do with Net Revenue. Net Revenue is NOT the same as profit.)

Just because net revenue is down, does not mean that the market didn't already account for this change. The real thing to look at is EPS and expectations. Additionally, after hours should not be used as any indicator since the volume is basically insignificant.

looks like the stock tanked initially but has recovered since.

Refer to chart: http://www.marketwatch.com/investing/stock/amzn

Agreed, looks like techcrunch fishing for a headline.

Net income did tank 96%. Net income refers to profits, not revenues.

Looking at the chart near the end, it shows the little sliver of a bar that's about 4% the size of the bar that comes before it.

Am I wrong to think that considering their razor thin margins, such dramatic reductions aren't really surprising?

They have over $10B in revenue but only about $100MM in profits. Fluctuations in their costs would easily wipe out those profits.

Correct. This is something mildly interesting blown far out of proportion by linkbait title, some fun with statistics and apparently after many years of killing profits to focus on growth people still buy Amazon's stock because they're hoping for blowout quarters. Better luck next time I guess.

"Of that 96 percent drop, Amazon estimated that $65 million of the net loss was due to its acquisition and integration of Kiva."