Amazon Stock Sinks 20% On Weak Quarterly Earnings, Further Slowdown Warning

Amazon reports worse-than-expected quarterly sales for the June-September period and warns that revenue growth will slow down to only 2% to 8% this holiday season.

People walk past an Amazon Go store in the Financial District in New York City.
Amazon is the latest company to pull back on hiring.
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Amazon today (Oct. 27) reported mixed earnings for the there months ending Sept. 30 and warned that growth will continue to slow down for the rest of the year. Panicked investors dumped Amazon stock in reaction, sending its share price down more than 20 percent in today’s after-hour trading.

The ecommerce and web services giant reported $2.9 billion in net earnings, or $0.28 per share, on $127.1 billion of revenue for the quarter. While earnings per share beat Wall Street analysts’ expectation of $0.22, profit fell 10 percent from a year ago.

Quarterly revenue came slightly below analysts’ expectation of $127.46 billion. Amazon projects sales in the upcoming holiday season quarter, or October to December, to grow only 2 to 8 percent from the same period last year, from $140 billion to $148 billion, the slowest pace in the company’s history.

About a third of Amazon’s quarterly profit came from the appreciation of its ownership in Rivian, a publicly traded electric vehicle startup. Amazon’s stake in the company has had an outsize impact on its income statement in recent fiscal quarters, contributing either billions in profits or losses. Amazon Stock Sinks 20% On Weak Quarterly Earnings, Further Slowdown Warning