revenue forecasts for the end of the year disappoint

Amazon is expected to fall sharply on Wall Street due to disappointing sales prospects. Cloud computing (AWS) performance also fell short of expectations. In the third quarter, the e-tailer and cloud specialist reported net income down to $2.9 billion, or 28 cents per share, from profit of $3.2 billion, or 31 cents per share, a year earlier. early.

The accounts benefited from a $1.1 billion pre-tax capital gain from its stake in electric car maker Rivian Automotive, whose stock rose.

Operating income rose in one year from 4.9 to 2.5 billion dollars, while the group’s target range extended from 0 to 3.5 billion dollars. The market anticipated 4 billion dollars.

Amazon’s total sales rose 15% to $127.1 billion, but the market was more optimistic and expected $127.6 billion.

Its cloud computing activity (AWS) saw its operating profit increase by 10.6% to 5.40 billion dollars for revenues up 27.5% to 20.50 billion dollars. Growth decelerated compared to the previous quarter (+33.3%).

In the fourth quarter, operating income is expected between 0 billion dollars and 4 billion dollars against 4.9 billion dollars a year earlier. The market is pricing in a profit of $5.1 billion.

The main disappointment came from sales for this strategic end-of-year period.

Amazon’s net sales are expected between $140 billion and $148 billion, representing growth of 2% and 8%. Wall Street is targeting $156 billion in revenue.

source: AOF

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