- Shares of Amazon Pre-market trading fell 2 percent on Friday after the e-commerce giant said fourth-quarter profit was lower than Wall Street estimates.
- Profit estimates surpass Amazon’s third-quarter earnings; Its sales growth rose to 37%, shattering revenue expectations.
- Amazon said its fourth-quarter operating profit will drop from $ 1 billion to $ 4.5 billion. This is below the street estimate of $ 5.81 billion.
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Amazon Profit estimates fell to 2% on Friday after disappointing fourth-quarter profit estimates and outperforming third-quarter earnings results.
The e-commerce giant broke third-quarter earnings expectations, with earnings per share at $ 12.37 and $ 7.41. Amazon reported $ 96.1 billion (expected $ 92.71 billion) in revenue and sales growth, up 37 percent.
Amazon said operating profit is likely to decline in the fourth quarter. It is estimated that about $ 4 billion will be spent on COVID-19 related costs.
Amazon said operating profit would fall between $ 1 billion and $ 4.5 billion in the fourth quarter. This is below the street estimate of $ 5.81 billion.
Amazon reported on Thursday that Amazon Web Services had $ 11.6 billion in sales in the third quarter, in line with street expectations. Physical-store sales fell 10 percent to $ 3.78 billion. Amazon’s advertising business sold $ 5.4 billion.
In the third quarter, Amazon’s workforce crossed one million for the first time. The e-commerce giant now has 1.13 million employees, a 50% increase over last year.
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