Amazon Spooks Investors With Warning Holiday Sales May Miss Estimates
Amazon forecast a holiday quarter with operating income that may break even and sales that could miss estimates. The outlook spooked investors accustomed to widening profit margins at the e-commerce bellwether.
Sales in the current quarter will be $42 billion to $45.5 billion, the company said Thursday in a statement. Analysts estimated $44.6 billion, according to data compiled by Bloomberg. Shares declined as much as 9% in extended trading after closing at $818.36 in New York.
The forecast tempered enthusiasm that had boosted shares by about 25% this year, making Chief Executive Officer Jeff Bezos the world’s third-wealthiest man. The optimism was fueled by the company’s rising profit and its ability to add customers to the $99-a-year Prime subscription service. Those consumers become Amazon’s most loyal, biggest spending shoppers.
