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Amazon Tumbles 20% as Revenue Guidance Misses

Published Oct 27, 2022 04:15PM ET
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© Reuters. Amazon (AMZN) Tumbles 20% as Revenue Guidance Misses
 
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By Sam Boughedda

Tech giant Amazon's (NASDAQ:AMZN) shares are down over 20% in after-hours trading on Thursday after the company released its third-quarter earnings with revenue and guidance missing analyst consensus expectations.

Amazon reported earnings of $0.28 per share, $0.06 better than the analyst estimate of $0.22, with revenue for the quarter coming in at $127.1 billion versus the consensus estimate of $127.76 billion.

Amazon explained that its net sales took a $5 billion unfavorable impact from year-over-year changes in foreign exchange rates. Operating income declined to $2.5 billion in the quarter, compared with $4.9 billion in the third quarter of 2021.

"In the past four months, employees across our consumer businesses have worked relentlessly to put together compelling Prime Member Deal Events with our eighth annual Prime Day and the brand new Prime Early Access Sale in early October. The customer response to both events was quite positive, and it's clear that particularly during these uncertain economic times, customers appreciate Amazon's continued focus on value and convenience," said Andy Jassy, Amazon CEO.

However, he added that given the current macroeconomic environment, the firm will be balancing its investments to "be more streamlined."

While the earnings numbers were mixed, Amazon's revenue guidance was below expectations. The company sees Q4 2022 revenue between $140 billion and $148 billion, versus the consensus of $155.1 billion, which anticipates an unfavorable impact of approximately 460 basis points from foreign exchange rates. The company sees operating income between $0 and $4 billion.

Amazon Tumbles 20% as Revenue Guidance Misses
 

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Comments (13)
ZS Beck
ZS Beck Oct 27, 2022 8:38PM ET
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Why was everybody surprised? This is the whole idea of the FED raising rates. Slow down the economy. I guess is working.The analyst was expecting blockbuster sales and revenues. I just hope Powel looks at these numbers and slow down with the rates, before he breaks everything
jason xx
jason xx Oct 27, 2022 6:31PM ET
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Between 0 and 4 billion? Thats helpful.
jamie
jamie Oct 27, 2022 5:14PM ET
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Too much selling. It's panic on groundless fear.
Art Carrano
Art Carrano Oct 27, 2022 5:14PM ET
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Time to buy.
EL LA
EL LA Oct 27, 2022 5:01PM ET
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Since Biden and the Fed want everything to go back to 2010 prices, does that mean AMZN is headed for 10 bucks?
Brad Albright
Brad Albright Oct 27, 2022 5:01PM ET
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What are you talking about?
Taylor Huddlestun
Taylor Huddlestun Oct 27, 2022 4:51PM ET
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Without a doubt, Apple saved the markets
HD HD
HD HD Oct 27, 2022 4:42PM ET
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Amazon is just flooded with cheap ********now.  Support your local business.
Casador Del Oso
Casador Del Oso Oct 27, 2022 4:39PM ET
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3MO yield 4.0474% 10 YR yield 3.904% LOOK OUT BELOW!
Mad Money
Mad Money Oct 27, 2022 4:35PM ET
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Fed will slow rate hike for sure
Atif zaidi
Atif zaidi Oct 27, 2022 4:35PM ET
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not really.... wait for elections and energy prices will skyrocket... EU is already in pain...and winter will make it worse
Aleksandr Anishchik
SanyaAxel Oct 27, 2022 4:35PM ET
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EL LA
EL LA Oct 27, 2022 4:31PM ET
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Wait. Is that a share price of 1760 now post splitskis?
Atif zaidi
Atif zaidi Oct 27, 2022 4:31PM ET
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not really.... wait for elections and energy prices will skyrocket... EU is already in pain...and winter will make it worse
EL LA
EL LA Oct 27, 2022 4:29PM ET
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How's that strong dollar treating you? :)
Brad Albright
Brad Albright Oct 27, 2022 4:29PM ET
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Ad a us consumer, pretty well. Thanks for asking.
 
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