Amazon Falls After Missing Sales Forecast (NASDAQ:AMZN)


But the company's revenue for the period was lower than expected, and it offered a disappointing revenue forecast for the fourth quarter.

Investors sold off the stock on the news.

Earnings came in at $5.75 per share, far ahead of Wall Street's consensus forecast of $3.14 and more than 10 times the prior-year quarter's 52 cents.

A drop of that magnitude would have the stock down more than 20%, putting it in a bear market.

E-commerce giant Amazon (AMZN) will be in the spotlight when it reports third-quarter results this afternoon.

Indeed, shareholders seemed to focus on the negative.

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Google's Asia-Pacific headquarter office in Singapore.Google parent Alphabet missed quarterly revenue estimates sending shares down nearly by 7 percent. The selloff completely wiped out the stock's strong gains earlier in the day in the regular session.

Q3 revenue: $56.6 billion.

Google's parent company Alphabet released its third-quarter 2018 results, revealing a total revenue of $33.74 billion United States dollars (about $44.04 billion CAD).

After falling as low $1028.77, Shares of Alphabet were down about 3 percent to $1,071.01 after hours from their close at $1103.59.

Q4 earnings per share (forecast): Between $66.5 billion and $72.5 billion.

The nerve-wracking anxiety that's gripped the USA stock market seems oddly unmoored from economic reality: Despite the turbulence on Wall Street, economic growth is strong, unemployment ultra-low and consumers exceptionally confident. Capital expenditures soared to $5.3 billion from $3.5 billion previous year, with 20 data center sites in development, Porat said.

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Shares in Alphabet fell about 6 per cent, knocking about $45 billion off its market value after it fell short on sales after beating estimates for the past eight quarters. In last year's fourth quarter, the company earned $US3.75 a share.

More sellers are looking to Amazon to market their products, too - another highly profitable business. Analysts projected US$3.9 billion. That division saw sales jump 35% to $US34.3 billion.

Net income increased to $2.9 billion, compared to $256 million in third-quarter of 2017. Add in the recent stock market rout, and the tech companies had little room to bobble their results.

That's a 21 percent increase compared to the same time past year.

"We don't see any real structural issue with Amazon but almost every line in the business is decelerating a tad, and we typically see another deceleration in retail in 4Q, hence are struggling to identify a catalyst", Barclays analyst Ross Sandler said. The company's burgeoning advertising business continued to show strength, with sales more than doubling in the quarter.

The company now groups its advertising group under "other" on its balance sheet.

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