Home » Money

Amazon Q4 sales forecast comes in below estimates

27 October, 2018, 21:45 | Author: Sara Gill
  • Amazon Falls After Missing Sales Forecast

But now, for the first time, they are starting to look consistent - with four consecutive quarters above $1 billion in profit. But the focus on profit that investors have long sought was not enough to keep them happy. Shares of Amazon.com Inc., which are up 50 percent so far this year, fell 7 percent to $1,655.98 in extended trading Thursday. The Street wanted to hear $73.79 billion, but Amazon forecast between $66.5 billion and $72.5 billion. A year ago, the pace was twice as quick. The company has dominated e-commerce in the USA, but faces stepped-up competition from rivals such as Walmart Inc. Investors increasingly envision a constellation of concerns, from rising interest rates, intensifying tensions over trade, a slowdown in China and the prospect that US corporate earnings growth will soon slow. On a call with reporters, Amazon CFO Brian Olsavsky said about 400,000 employees will be affected by a promise made last month to bump the company's minimum wage to $15 an hour for all employees, including part-time and seasonal workers.

Amazon has been adding many new features and offerings to AWS, and recently added the T3 service, which offers ultra fast instances powered by the company's Nitro System hardware-accelerate hypervisors. Deutsche Bank analyst Lloyd Walmsley reiterated his Buy rating for Amazon stock due to his confidence about other long-term opportunities, such as grocery, global markets, and ad businesses. The company continues to increase wallet share with existing cloud customers, and acquisition remains strong evidenced by Amazon's healthy pipeline of new enterprise clients. Amazon shares have roughly tripled in the past three years, while Alphabet is up more than 50 percent.

Alphabet (Xetra: ABEA.DE - news) 's revenues missed forecasts.Its stock was more than 5% lower on Friday.

In the latest quarterly reports, Microsoft's cloud computing business Azure marked revenue growth of 76 percent, down from 89 percent in the previous quarter. After years of rapid growth, the share of Americans who go online, use social media or own mobile devices has plateaued in the past two years, according to a September analysis of Pew Research Center data. In a statement, Bezos said, "Amazon Business has now reached a $10 billion annual sales run rate and is serving millions of private and public-sector organizations in eight countries". Amazon appeals to advertisers because individuals generally are using the site to shop, unlike users browsing Alphabet Inc's Google, the ads sales leader, to find general information or rival Facebook Inc to see updates from their friends. A big reason behind that was the absorption of Whole Foods Market and the 87,000 people who work there.

After the bell, Amazon tanked 8 percent.


  • Bailing bulls reverse gains, knock ASX to 21-month low

    Bailing bulls reverse gains, knock ASX to 21-month low

    Banks, health care and industrial companies also took heavy losses, outweighing gains by utilities and other high-dividend stocks. The Shanghai Composite index slipped 1.6 per cent to 2,561.36 and Hong Kong's Hang Seng index skidded 1.8 per cent to 24,785.68.
    Virat Kohli fastest-ever to reach 10,000 ODI runs

    Virat Kohli fastest-ever to reach 10,000 ODI runs

    At 40 for two in the ninth over, Rayudu joined his skipper and the two played fluently to keep the run rate healthy. The actress took to social media and shared the moment from today's cricket match with all "heart" emoticons.
    Cops to start new ground search for missing Wisconsin girl

    Cops to start new ground search for missing Wisconsin girl

    When authorities arrived at the scene, they found the bodies of both parents, who were turkey plant workers, but Jayme was gone. Police have revealed that Denise's phone was used to call officers around the time the murders and kidnapping took place.
  • Xi Jinping launches mega bridge connecting Hong Kong to mainland

    Xi Jinping launches mega bridge connecting Hong Kong to mainland

    Hong Kong leader Carrie Lam said the bridge would help transform Hong Kong from a "connector to a more active participant". The $20 billion (2.3 trillion yen) bridge took nearly a decade to build while incurring major delays and cost overruns.

    WWE's "Crown Jewel" PPV Will Take Place In Saudi Arabia, Despite Resistance

    After weeks of denials, the kingdom finally confirmed Khashoggi's death on October 20, claiming he died in a fistfight . The Saudi public prosecutor sys the murder of journalist Jamal Khashoggi was premeditated , according to state TV.
    Britain's May says divorce deal with European Union  nearly  done

    Britain's May says divorce deal with European Union nearly done

    Theresa May says only 5% of the withdrawal agreement is left to negotiate with Brussels. No 10 sources said her diary would be set out on Monday.
  • Sri Lanka in political turmoil after prime minister Wickremesinghe sacked

    Sri Lanka in political turmoil after prime minister Wickremesinghe sacked

    A United Nations report found that up to 40,000 ethnic Tamil civilians may have been killed in the final months of the war alone. His government also pledged justice for those accused of committing atrocities in Sri Lanka's civil war during Rajapaksa's rule.
    U.S.  police probe suspicious package 'sent to De Niro restaurant'

    U.S. police probe suspicious package 'sent to De Niro restaurant'

    A law enforcement official told CNN that the initial examination of all of the devices shows them to be constructed similarly. He said investigators were able to trace Sayoc after finding a fingerprint on an envelope containing a bomb sent to Rep.
    Anti-Brexit protest draws tens of thousands

    Anti-Brexit protest draws tens of thousands

    The PM will tell the House of Commons that "taking all of this together, 95 per cent of the withdrawal agreement and its protocols are now settled".
  • Shocking! MS Dhoni will not play for India in T20Is again

    Shocking! MS Dhoni will not play for India in T20Is again

    Meanwhile, Rohit Sharma was named captain of India for the three-match series against West Indies , which begins on November 4. The player once dubbed "Captain Cool" retired from Tests in 2014 and then relinquished the limited-overs captaincy in 2017.
    Oldest intact shipwreck discovered at the bottom of the Black Sea

    Oldest intact shipwreck discovered at the bottom of the Black Sea

    The "Siren Vase" in the British Museum: the shipwreck is believed to be a vessel similar to that shown bearing Odysseus. An ancient Greek ship has been discovered in excellent condition by a team of researchers in the Black Sea .
    Arsenal vs. Leicester City - Football Match Report

    Arsenal vs. Leicester City - Football Match Report

    He does go missing in games where Arsenal don't dominate the ball and in thew big games I'd question if he's turned up'. Did well to block Kelechi Iheanacho's early shot but didn't look almost as solid as in previous games.


Satan-worshiping Polk girls plot stabbing attack at school, police say
That plan was triggered as administrators searched for the students after they didn't show up for class Tuesday. Police have not yet released any information on whether the girls will be charged with a crime.

Dodgers Host Boston Red Sox In Los Angeles
Mike Winter said he saw Betts and another man, later identified as Betts' cousin, putting the food out before offering it. The Dodgers now trail their rivals 2-1 in the best-of-seven series. "I know it's easier said than done".

Police probe suspicious package addressed to Robert De Niro
They noted the president's recent praise of a GOP congressman who body-slammed a reporter, among other Trump statements . Who has already received a " pipe bomb " in the post? First lady Melania Trump said in a statement that, "Mrs.

More than a million Florida voters have already cast their ballots
If you've been to a political event this election season, there are two dates that speakers have tried to sear into your memory. Hennepin County officials said these requests are very rare, that they are averaging only about one a day.

Pentagon to send about 800 troops to US-Mexico border
Defence Secretary Jim Mattis was expected to sign orders either Thursday or Friday for the new deployment, one official said. It was not immediately clear why active duty forces were chosen, since National Guard troops can perform the same functions.

Loftus-Cheek scores hat-trick in Chelsea win
Ruben Loftus-Cheek needed to prove a point to his Chelsea head coach and did so in style last night with his first senior hat-trick - to the delight of his team-mates.

China says Trump should swap iPhone for Huawei amid bugging claim
American intelligence reports indicated that Chinese and Russian spies often listen in on President Donald Trump . On Twitter today, Trump said "I rarely use a cellphone and when I do it's government authorized".

Red Dead Redemption 2 runs best on Xbox One X
It's the ultimate cowboy fantasy, enabling you to completely inhabit the game's protagonist, living the life of a man out of time. Red Dead Redemption 2's physical release will take around 90 minutes to install on a PlayStation 4, YouTuber GeekAloud reveals .

Meghan Markle Dazzles In Glamorous Blue Dress With A Cape
The couple was scheduled to attend a reception and state dinner Tuesday evening hosted by Fijian President Jioji Konrote . Prince Harry and his wife Meghan have arrived in Fiji, where they were greeted by a Guard of Honour at Nausori Airport.

Ohio State knocked out of top 10 in latest college football poll
Now, think what you will about UCF's strength of schedule and supposed lack of competition, but you tell me if this sounds right. The loss sinks Navy to 2-5 this season and the chance to go to a seventh straight bowl game is beginning to fade.