Weak Christmas quarter expected
Amazon expects weak Christmas quarter
The world’s largest online retailer, Amazon, has alienated investors with a surprisingly weak sales forecast for the Christmas quarter. The group expects revenues of between 140 billion and 148 billion dollars, as announced on Thursday.
The world’s largest online retailer, Amazon, sent the share plummeting with its forecast of weak Christmas business. (archive image)
Analysts had expected significantly more. In an initial reaction, the share price fell by more than 20 percent in after-hours trading. The profit forecast – Amazon promises a result between zero and 4.0 billion dollars – caused disappointment.
In the past third quarter, Amazon earned $2.9 billion. In the corresponding period last year, it was still 3.2 billion dollars. Sales grew 15 percent to $127.1 billion, but also fell short of market expectations.