Google's parent company Alphabet posts $33.74 billion Dollars Q3 revenue

Amazon’s Jeff BezosMore

Amazon’s Jeff BezosMore

To put Amazon's growth in perspective, there are now more people working for the tech giant than people living in Baltimore (601,000) or Milwaukee (586,000).

Jeff Bezos, CEO of Amazon, which disappointed Wall Street Thursday despite posting much better-than-expected third quarter earnings.

Amazon Web Services Q3 sales were up 46 percent year-over-year to $6.68 billion. Again, while the Street expected somewhere around $73 billion for the important holiday quarter, Amazon told investors to expect anywhere from $66.5 billion to $72.5 billion. More broadly, investors are anxious about the impact of President Trump's trade war and the outlook for corporate profit growth. Analysts had forecast $US3.11 per share.

Revenue from Amazon's global business, which brings in 27.5 per cent of total sales, was at the heart of the shortfall in results, growth halving to 13.4 per cent compared to the previous quarter.

"A lot of that is based on efficiencies of our data centers, not only for the AWS business but also for our Amazon consumer businesses, AWS's biggest customer", he said.

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In 2017, the company posted revenues of $177.8 billion (£136.6bn) and a net income of $3.03 billion (£2.33bn).

Investors are anxious about the weak profit outlook and the increased pace of spending, said RJ Hottovy, an analyst at Morningstar Inc. The company's burgeoning advertising business continued to show strength, with sales more than doubling in the quarter. Amazon shares (NASDAQ:AMZN) fell heavily in after-hours trading by as much as nine percent and ended the late session down about seven-and-a-half percent to close at $1,640 a share, a price last seen in early June of this year. In the last four quarters, sales increased between 29 percent and 43 percent. It purchased online pharmacy PillPack in June, which followed its US$13.7 billion acquisition of Whole Foods previous year to jump start its grocery business.

However, on Thursday night it said operating profits in the coming quarter could be as low as $2.1bn, flat with past year. The shares have dropped about 15 per cent from their September high amid a broader market downturn and closed at US$1,782.17 before the results were released.

Wall Street was looking for earnings of $3.14 per share on revenue of $57.1 billion. The company's fast-growing cloud computing and advertising units, which are more profitable than its main e-commerce business, help fuel Amazon's investments in more retail categories, video content and devices such as tablets and Echo smart speakers. Shares of No. 2 online ad firm Facebook Inc (FB.O), which faces questions about flattening usage limiting revenue growth, had fallen 12.5 percent and were trading at 19 times future earnings.

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