Amazon plunges 10% on revenue and guidance miss

Amazon plunges 10% on revenue and guidance miss


Amazon's third-quarter earnings beat Street estimates, but its revenue and fourth-quarter outlook fell short of expectations, causing the stock to plunge in extended trading.

Here are the most important numbers:

  • EPS: $5.75 vs. $3.14 estimated, according to Refinitiv
  • Revenue: $56.6 billion vs. $57.10 billion estimated, according to Refinitiv
  • AWS revenue: $6.68 billion vs. $6.71 billion estimated, according to FactSet
 

The company gave fourth-quarter revenue guidance in the range of $66.5 billion and $72.5 billion, well-below consensus of $73.79 billion. The fourth quarter is the biggest and most important sales period for Amazon because of the holidays.

Amazon shares plunged 10 percent in premarket trading Friday to $1,600 a share. At this rate, it will be the stock's biggest decline since an 11 percent drop in January 2014.

The results show how Amazon could have a disappointing holiday season in its all-important fourth-quarter, as the overall business sees a slight deceleration in growth. At the same time, it highlights the growth of Amazon's high-margin businesses, like its cloud and advertising units, that are more profitable than its core retail segment. See more...




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