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Retail

Amazon.com reports miss on 3Q revenue as shares tumble

Amazon now has reached $10 billion in annual sales serving customers in up to eight countries

Retail behemoth Amazon.com Inc (NASDAQ:AMZN) reported on Thursday a miss in third quarter revenue, causing shares to tumble in afterhours trade.

The company reported third quarter sales at $56.6 billion, below the consensus estimate of $57.1 billion, but above the year-ago level of $43.74 billion.

Net income reached $2.9 billion with EPS at $5.75, compared with expectations it would hit $3.14 and the year-ago mark of $0.52.

Shares of Amazon fell 5% to $1,692.25 in afterhours trade, having closed on Thursday up 7.09% to $1,782.17.

READ: Amazon launches biggest lineup of new devices as Alexa invades every corner of your house

"Amazon Business has now reached a $10 billion annual sales run rate and is serving millions of private and public-sector organizations in eight countries,” said Jeff Bezos, Amazon founder and CEO.

Among the company's highlights for the quarter are the introduction by Amazon of a new family of Echo devices and the all-new Fire HD 8 tablet among others.

Amazon expanded grocery delivery from Whole Foods Market through Prime Now.

Reporting by Rene Pastor, contactable on rene.pastor@proactiveinvestors.com

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