After-hours trading on Thursday saw shares of the tech giant Amazon (NASDAQ:AMZN) drop by more than 20%. This came after the firm announced its results for the third quarter, which showed that both sales and forecast fell short of analyst consensus estimates.
Amazon Stock has announced profits of $0.28 per share, which is $0.06 more than the average forecast of $0.22 per share. At the same time, sales for the quarter came in at $127.1 billion, which is $0.02 lower than the consensus estimate of $127.76 billion.
According to Amazon’s explanation, fluctuations in foreign currency rates had a negative effect of $5 billion on the company’s net sales compared to the previous year. The operating income for the period was $2.5 billion, a significant decrease from the $4.9 billion in the third quarter of 2021.
“Employees across our consumer businesses have been working tirelessly over the last four months to create exciting Prime Member Deal Events. These events include our eighth annual Prime Day and the new Prime Early Access Sale that began in early October. Both of these events received overwhelmingly positive customer feedback. It is abundantly clear that customers, particularly in light of the current precarious state of the economy, are grateful for Amazon’s unwavering commitment to providing both value and convenience, “said Andy Jassy, Amazon CEO.
Having said that, he went on to say that in light of the current state of the macroeconomic climate, the company would be recalibrating its investments to “be more streamlined.”
Even though the earnings statistics were mixed, Amazon’s projection for revenue was below what was expected. The business estimates sales between $140 billion and $148 billion for the fourth quarter of 2022, which compares to the average estimate of $155.1 billion and accounts for an adverse effect from fluctuations in foreign exchange rates of roughly 460 basis points. Amazon stock has an operating income that ranges from zero to four billion dollars.
The Amazon Stock Price Drops by 20% After Missing Revenue Guidance Targets
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