Amazon Shares Fall On Q3 Earnings Miss As Big Tech Market Rout Continues
Amazon shares dropped as much as 9 percent in after-market trading after the company reported third-quarter earnings and revenue that fell short of Wall Street expectations. The e-commerce and technology giant posted net income of US$20.7b on revenue of US$201.9b, but its earnings per share stepped down sharply from the prior quarter and its holiday-quarter sales outlook failed to reassure investors. The miss compounded broader market anxieties over ballooning artificial intelligence spending and negative free cash flow across major technology firms.
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- ✓ Amazon shares fell as much as 9% in after-market trading after reporting third-quarter earnings below Wall Street expectations.
- ✓ Net income landed at US$20.7b on revenue of US$201.9b for the third quarter.
- ✓ Amazon's negative free cash flow ballooned during the third quarter.
- ✓ AWS growth hit 39%, marking its fastest growth in nearly five years.
What changed
Amazon reported third-quarter earnings and revenue below Wall Street expectations, triggering a sharp decline in share value amid ongoing market concerns over artificial intelligence spending.
Live updates
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Amazon Shares Drop on Q3 Earnings Miss Amid Tech Rout
Amazon shares dropped as much as 9 percent in after-market trading after the company reported third-quarter earnings and revenue that fell short of Wall Street expectations. The e-commerce and technology giant posted net income of US$20.7b on revenue of US$201.9b, but its earnings per share stepped down sharply from the prior quarter and its holiday-quarter sales outlook failed to reassure investors. The miss compounded broader market anxieties over ballooning artificial intelligence spending and negative free cash flow across major technology firms.
Why it matters
The earnings miss contributed to a wider market rout that sent US stocks to their worst day since June. Investors are increasingly jittery over massive capital expenditures directed at meeting surging demand for artificial intelligence services. Even as cloud computing division AWS registered its fastest growth in nearly five years, soaring infrastructure costs weighed heavily on profitability.
What is confirmed
- Amazon shares fell as much as 9% in after-market trading after reporting third-quarter earnings below Wall Street expectations.
- Net income landed at US$20.7b on revenue of US$201.9b for the third quarter.
- Amazon's negative free cash flow ballooned during the third quarter.
- AWS growth hit 39%, marking its fastest growth in nearly five years.
Still unconfirmed
- The stock move was driven more by emotion around a profit reset than actual fundamental business failure.
What to watch next
- Amazon's performance and sales figures during the holiday shopping quarter
- Future capital expenditure disclosures regarding artificial intelligence infrastructure spending
confidence 100%Sources used for this update (21)
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