The Newshound

Amazon shares slide more than 7% after the retail giant forecasts weak Christmas sales amid a US cost-of-living squeeze

AWS revenue surged 39% to $46 billion in the third quarter, even as Amazon forecast weak Christmas sales amid rising US household costs, sending its shares down more than 7%.
AWS revenue surged 39% to $46 billion in the third quarter, even as Amazon forecast weak Christmas sales amid rising US household costs, sending its shares down more than 7%.

The shortfall points to US consumers pulling back on spending as higher gas prices and rising household costs bite. Third-quarter sales and profit also missed expectations despite a bumper quarter for Amazon Web Services.

AWS revenue surged 39% to $46 billion in Q3, a pace not seen in close to five years and one that topped analyst forecasts.

Amazon held its annual capital expenditure guidance at around $220 billion as it races to build data centres and compete in AI.

The downbeat outlook is an early warning for US retailers broadly, even as the National Retail Federation has forecast a 4.2% rise in total holiday sales this year.

MoreFinancial TimesAmazon shares slide on lower Christmas sales forecastAPAmazon delivers disappointing 3Q results and offers cautious outlook for holiday periodReutersAmazon projects fourth quarter sales below estimatesTransport TopicsAmazon offers cautious holiday-quarter outlook - Transport TopicsThe Globe and MailAmazon projects fourth quarter sales below estimates, stoking demand concernsThe TimesAmazon misses third-quarter sales and profit expectations
Read today's full feed at The Newshound →