Amazon Dips As Lukewarm Profit Forecast Overshadows Third Quarter Profit Explosion

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Amazon said its fourth-quarter operating profit would drop to $ 1 billion to $ 4.5 billion, below Street’s estimate of $ 5.81 billion.

  • Amazon shares fell 2% in pre-market negotiations on Friday after the e-commerce giant said its fourth-quarter profit would likely fall below the Wall Street estimate.
  • The earnings estimate eclipsed Amazon’s explosive third-quarter earnings; its sales growth skyrocketed 37% and its revenues exceeded expectations.
  • Amazon said its fourth-quarter operating profit would drop to $ 1-4.5 billion, below Street’s estimate of $ 5.81 billion, as COVID-19 costs rise. accumulate.
  • Watch Amazon trading live here.

Amazon fell 2% in pre-market trading on Friday after its fourth-quarter profit estimate disappointed investors and overshadowed its better-than-expected third quarter results.

The e-commerce giant broke third-quarter earnings expectations, reporting earnings per share of $ 12.37 from the estimate of $ 7.41. Amazon also reported $ 96.1 billion ($ 92.71 billion expected) in revenue and sales growth of 37%.

But Amazon said its operating profit would likely drop in the fourth quarter, as it expects to spend around $ 4 billion on COVID-19 costs.

Amazon said its fourth-quarter operating profit would drop to $ 1 billion to $ 4.5 billion, below Street’s estimate of $ 5.81 billion.

Amazon also announced Thursday that its Amazon web services posted third-quarter revenue of $ 11.6 billion, in line with Street’s expectations. Physical store sales fell 10% to $ 3.78 billion, while Amazon’s advertising business posted sales of $ 5.4 billion.

The third quarter was the first time that Amazon’s employee count broke the million mark. The e-commerce giant now has 1.13 million employees, a 50% increase from last year.

Read more: Goldman Sachs shares 10 high-growth stocks it recently recommended buying, as investors reward companies that channel their cash to grow their businesses in 2021

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