// Amazon shares dropped by 18% in after-hours trading due to weaker than expected revenue
// Amazon reported revenue of $127.1bn for the three-month period to 30 September
Amazon has returned to profitability after two consecutive quarters of losses this year, but shares tanked as it warned sales over the critical Christmas period would be weaker.
Despite the recovery, the online retailer‘s shares dropped by 18% in after-hours trading due to weaker than expected revenue.
Amazon reported revenue of $127.1 billion for the three-month period to 30 September, less than the $127.4 billion analysts predicted.
In the past two quarters, Amazon’s revenue had grown at roughly 7%, its slowest in nearly two decades.
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Amazon expects revenue for the fourth quarter to be between $140 billion and $148 billion, a growth of 2% and 8% compared with the fourth quarter of last year.
Shares in Amazon.com fell almost 21% in after-hours trading.
The retailer said it made a profit of $2.9 billion, or 28 cents per share, for the three-month period that ended on September 30.
That marks a decline compared with a profit of $3.15 billion, or 31 cents per share, during the same period a year ago.
Amazon CEO Andy Jassy said: “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.
“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.”
