In the wake of new warehouses and promotion of its Kindle electronic-book reader, Amazon. com Inc., the world’s largest online retailer, has forecasted lower operating profit of its second quarter in comparison to the predictions of the analysts.

Recently, a survey was conducted by some analysts and they predicted operating income of $369.5 million but in an official statement the Seattle-based company said that the operating income, which excludes taxes and interest, will come to be around $95 million to $245 million for this quarter.

Amazon Chief Executive Officer, Jeff Bezos believes that the company’s growing cash hoard to build distribution centers, expand online video-streaming services and promote the Kindle is the main driver behind the operating profit missing the estimates.

Fred Moran, an analyst with Benchmark Co. in Boca Raton, Florida, stated, “It’s not a given that all the spending will drive future earnings at a robust pace. It’s entirely possible they spend all this money and don’t get a dramatic return for it”.

James Mitchell, an analyst at Goldman Sachs Group Inc. presented its estimates that suggest that the firm will be spending about $900 million this year as part of its effort to expand warehouses and data centers.