Shares for Amazon were down 17.28% on Thursday after posting lower than expected earnings in the third quarter.
The Seattle-based retailer reported net sales in Q3 increased 15% to $127.1 billion in the third quarter, compared with $110.8 billion in third quarter 2021. This is lower than the expected amount of $127.46 billion.
Net income also decreased in the quarter to 2.9 billion in the third quarter of 2022, or $0.28 per diluted share, compared with $3.2 billion, or $0.31 per diluted share, the same time last year
By segment, North American sales increased 20% year-over-year to $78.8 billion in Q3, while the international segment sales decreased 5% year-over-year to $27.7 billion. AWS segment sales increased 27% year-over-year to $20.5 billion in the quarter.
As for net income in the quarter, Amazon saw a decrease to 2.9 billion in Q3, or $0.28 per diluted share, compared with $3.2 billion, or $0.31 per diluted share, the same time last year
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Amazon CEO Andy Jassy said in a statement on Thursday that the company is “encouraged” by the steady progress it has made on lowering costs in its stores fulfillment network, and has a set of initiatives that will “yield a stronger cost structure” for the business moving forward.
“There is obviously a lot happening in the macroeconomic environment, and we’ll balance our investments to be more streamlined without compromising our key long-term, strategic bets,” Jassy added. “What won’t change is our maniacal focus on the customer experience, and we feel confident that we’re ready to deliver a great experience for customers this holiday shopping season.”
Looking ahead, Amazon said it expects to post fourth-quarter revenue between $140 billion and $148 billion, representing year over year growth of 2% to 8%. Analysts were expecting sales to come in at $155.15 billion, according to Refinitiv.
These results mark an end to a rocky week for big tech stocks. Google parent company Alphabet and Facebook parent Meta both posted earnings that fell short of expectations, while Microsoft reported softer than expected cloud revenue and weak quarterly guidance.
