Amazon Stock Plunges on Revenue Miss

By Anya George Tharakan Earnings Reuters

Amazon boxes are seen stacked for delivery in the Manhattan borough of New York City, January 29, 2016. REUTERS/Mike Segar/File Photo (Copyright Reuters 2017)

Amazon.com Inc's quarterly revenue rose 22.4 percent, driven by strong sales in the holiday period and a jump in subscriptions for its Prime service.

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The world's biggest online retailer said its net sales rose to $43.74 billion in the fourth quarter from $35.75 billion a year earlier. Analysts had expected $44.68 billion, according to Thomson Reuters I/B/E/S.

Amazon's net income rose to $749 million, or $1.54 per share, from $482 million, or $1 per share, a year earlier.

Revenue from Amazon Web Services, the company's cloud services business, jumped 47 percent to $3.54 billion, missing the average analyst estimate of $3.60 billion, according to market research firm FactSet StreetAccount.

Amazon said last month that the 2016 holiday was its best-ever shopping season, when it shipped 50 percent more items than the prior year for third-party vendors.

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