Amazon (AMZN) shares fell sharply in premarket trading Friday after the e-commerce giant reported weaker-than-expected quarterly revenue and issued light current-quarter guidance, as consumers opted to purchase cheaper products, lowering the average selling price in its core retail business.
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24/7 Wall St. Insights Amazon.com Inc. (NASDAQ: AMZN) earnings upset investors, even though they beat expectations.
Although its earnings have fallen short of analysts' forecasts and Twitch is yet to explode in popularity and profit, the price of Amazon (NASDAQ: AMZN) stock responded by dipping over 8% in pre-market trading, finance experts' AMZN stock price targets for the next 12 months are bullish.
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Amazon's revenue growth was driven by non-1P businesses, while advertising and AWS showed mixed performance. North America operating margins improved in core retail business, while international margins deteriorated due to increased spending. AWS reported strong revenue growth and high operating margins, while capital intensity and investments in Kuiper satellite project increased.
Amazon reported a boost in its quarterly profits Thursday, but the company missed revenue estimates, sending its stock lower in after-hours trading.
Amazon stock fell over 6% after the earnings report. Near-term prospects driven by AWS, advertising, and retail operations. Amazon's growth rates expected to stabilize around 11-12% in the near term.
Amazon shares fell almost 8% in early trading in Frankfurt on Friday after reporting slowing online sales growth in the second quarter and noting consumers were seeking out cheaper options for purchases.