Amazon Stock Tumbles Following Quarterly Earnings Miss

Shares of Amazon.com Inc. tumbled 11% in after-hours trade following the company's weaker-than-expected earnings report. The company reported net income of $482 million, or $1 a share, compared with $214 million, or 45 cents, in the year-earlier period. The results fell sharply below analyst expectations of $1.55. Sales for the period were up 22% to $35.7 billion, slightly below the FactSet consensus estimate of $35.9 billion. For the current quarter, Amazon sees revenue between $26.5 billion and $29 billion, versus the Street estimate of $27.6 billion. The company reported a 51% increase in Prime membership, though it did not give specific membership numbers. Net sales for Amazon Web Services came in at $2.4 billion, in-line with FactSet expectations, and up from $1.4 billion last year.