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Amazon Tumbles 20% as Revenue Guidance Misses

Published 10/27/2022, 04:15 PM
Updated 10/27/2022, 04:17 PM
© Reuters.  Amazon (AMZN) Tumbles 20% as Revenue Guidance Misses

© Reuters. Amazon (AMZN) Tumbles 20% as Revenue Guidance Misses

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.

Latest comments

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
Between 0 and 4 billion? Thats helpful.
Too much selling. It's panic on groundless fear.
Time to buy.
Since Biden and the Fed want everything to go back to 2010 prices, does that mean AMZN is headed for 10 bucks?
What are you talking about?
Without a doubt, Apple saved the markets
Amazon is just flooded with cheap ********now.  Support your local business.
3MO yield 4.0474% 10 YR yield 3.904% LOOK OUT BELOW!
Fed will slow rate hike for sure
not really.... wait for elections and energy prices will skyrocket... EU is already in pain...and winter will make it worse
won’t
Wait. Is that a share price of 1760 now post splitskis?
not really.... wait for elections and energy prices will skyrocket... EU is already in pain...and winter will make it worse
How's that strong dollar treating you? :)
Ad a us consumer, pretty well. Thanks for asking.
Here we go
I never lost more money in one day
The collapse started!
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