Friday, October 25, 2019

Amazon Misses

Have we reached peak Amazon? Amazon.com's profit fell for the first time in more than two years in the third quarter, the Internet giant reported yesterday. Moreover, the company expects another earnings decline in the holiday-shopping season.

Amazon reported third-quarter profits of $4.23 a share on sales of $69.98 billion. Sales rose from $56.58 billion a year ago, but earnings declined from $5.75 a share, the first time Amazon earnings have shrunk year-over-year since June 2017.

The company had reported profit of more than $10 billion in 2018, more than triple its previous annual record, and had reported record quarterly profit totals for four consecutive quarters before breaking that streak with its new second-quarter results. Looking to the future, Amazon’s forecast for the holiday quarter came in short of analysts' estimates for both profit and sales.

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