Amazon sinks as revenue growth disappoints
Amazon shares tumbled on Friday after the e-commerce giant reported mixed quarterly results, beating expectations on earnings but missing on revenue.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 173.67 | -2.92 | -1.65% |
The company posted third-quarter earnings per share of $5.75 on net income of $2.9 billion, topping expected earnings per share of $3.14, according to Refinitiv data. Revenue jumped 29 percent to $56.6 billion, below a projected $57.10 billion.
Amazon CEO Jeff Bezos touted the success of the company’s business supplies unit in a press release, noting that the segment had achieved $10 billion in annual sales.
“Amazon Business has now reached a $10 billion annual sales run rate and is serving millions of private and public-sector organizations in eight countries,” Bezos said. “And we’re not slowing down – Amazon Business is adding customers rapidly, including large educational institutions, local governments, and more than half of the Fortune 100.
Amazon said it expects fourth-quarter revenue to be between $66.5 billion and $72.5 billion, citing an “unfavorable impact” from foreign exchange rates. Wall Street analysts projected fourth-quarter revenue of $73.79 billion.
The e-commerce giant’s cloud services arm had a strong quarter, with revenue jumping 46 percent to $6.7 billion. Sales in North America jumped 35 percent to $34.3 billion.
