Lates News

Amazon (AMZN.O) on Thursday reported fourth-quarter revenue guidance that was broadly below market expectations, sparking concerns about weak retail demand during the key holiday shopping season. Consumer spending is coming under pressure as rising inflation drives up household expenses. Amazon shares fell as much as 12% in after-hours trading. Amazon expects fourth-quarter revenue of between $240 billion and $247 billion, compared with analysts' average estimate of $244.51 billion. In the third quarter, Amazon Web Services (AWS) revenue grew 39% year over year to $46 billion, above analysts' expectations of 38.2% growth. The company also maintained its full-year capital expenditure forecast of approximately $220 billion unchanged. The weak fourth-quarter guidance suggests that U.S. retailers may face pressure during the holiday shopping season as consumers tighten their shopping budgets amid rising gasoline prices and the growing cost of living. Although the retail business accounts for the majority of Amazon's revenue, in recent years investors' focus has clearly shifted to AWS.