Amazon projects fourth quarter sales below estimates
It expects revenue of between $240.0 billion and $247.0 billion in the fourth quarter, compared with analysts' average estimate of $244.51 billion, according to data compiled by LSEG.
Amazon has lowered its fourth-quarter revenue projections, projecting between $240.0 billion and $247.0 billion, which is significantly below the average estimate of $244.51 billion from analysts. This news has caused the company's shares to drop by more than 7% in extended trading. The decrease in revenue is attributed to heightened retail demand concerns during the holiday season, as consumers face higher household costs due to rising inflation, which may dampen their spending power.
Amazon's earnings report also revealed a 39% increase in revenue for its Amazon Web Services (AWS) business to $46 billion in the third quarter ended September, surpassing analysts' estimate of a 38.2% rise to $45.61 billion. AWS revenue grew by 37% in the second quarter. Despite this, Amazon has kept its annual capital spending forecast of around $220 billion.
The company's cloud computing division, AWS, experienced its fastest growth in nearly five years as Amazon invests heavily in data centers and competes in the global AI market. However, recent industry forecasts still predict a 4.2% increase in total US holiday season sales, as reported by the National Retail Federation earlier this month.
Written by urgent.news from Economic Times Tech's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- Amazon projects fourth quarter sales below estimates channelnewsasia.com
