Amazon’s Q3 Numbers: A Mixed Bag of Growth and Drag
Amazon just handed in its third‑quarter earnings, reporting a 30% rise in revenue at constant exchange rates. That pushes the top line to $56.6 bn, a solid jump but still shy of the market’s expectation of just over $57 bn. Time to see how the next quarter shapes up.
What the Numbers Say
- Q3 Revenue: $56.6 bn – a 30% lift, but slightly below forecast.
- Q4 Guidance: $66.5 bn–$72.5 bn – a friendly range that still trails the previously expected $73.9 bn.
- Operating Income: Jumped from a modest $347 m last year’s Q3 to $3.7 bn, largely powered by AWS and the North American retail division.
Stock Market’s Quick Reaction
Shares dipped 8.7% in after‑hours trading, wiping out earlier 7% gains. The market’s reaction suggests investors are licking their wounds over the under‑performance.
Analyst’s Take: Prime, Alexa, and the Big Oops
George Salmon, an Equity Analyst at Hargreaves Lansdown, summed it up:
“Prime, Alexa, and AWS were the usual winners, but the weak revenue growth was a glaring sore point. Even for a company worth about $800 bn, Amazon still has to convince investors that it’s a solid growth performer. With a 70‑fold expected earnings multiplier, a small stumble can bob the share price.”
Bottom Line: Amazon Still a Growth Fanatic
Even with the hiccups, Amazon remains a premium growth bet. The next quarter’s performance will truly decide whether the holiday sales surge will do the trick.
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