Amazon shares plunge 9% despite record Q3 profit

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Amazon update

Amazon has reported a record $2.9 billion (£2.26 billion) profit for the three months to September 30, but failed to impress investors on Wall Street.

Despite posting a fourth consecutive quarter with profits over $1 billion (£800,000), shares in the online retail giant fell nine per cent on the back of the news.

Operating income came in at $3.7 billion (£2.9 billion) in the three month period, up from $347 million (£270 million) a year ago.

Sales rose 29 per cent to $56.6 billion (£44.1 billion) for the third quarter, but this was just beneath analyst estimates.

For the crucial final quarter of the year, Amazon now expects sales to come in between $66.5 billion (£51.8 billion) and $72.5 billion (£56.5 billion).

It forecast that fourth-quarter sales will rise between 10 per cent and 20 per cent, which is also below analyst estimates.

Meanwhile, Amazon founder and chief executive Jeff Bezos used the report to tout the benefits of Amazon Business.

“Amazon Business has now reached a $10 billion (£7.8 billion) annual sales run rate and is serving millions of private and public-sector organisations in eight countries,” he said.

“And we’re not slowing down – Amazon Business is adding customers rapidly, including large educational institutions, local governments, and more than half of the Fortune 100,” he added.

As always with Amazon financial updates, the company also updated on its long list of corporate strategies and tech innovations.

It noted that it has increased hourly minimum wage to £10.50 in the London area, and £9.50 in the rest of the U.K. 

The business added that the new minimum wages will benefit more than 17,000 Amazon employees in the UK, as well as thousands of others who will be hired at Amazon sites across over the peak trading period.

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