Amazon shares fall 7 per cent after weak Q4 revenue forecast
Amazon's shares dropped 7 per cent in after-hours trading after it forecast Q4 revenue below expectations. The company reported a negative free cash flow of US$42.4 billion for the past 12 months, despite a 12 per cent rise in quarterly revenue to over US$201.9 billion.
Shares in Amazon fell nearly 7 per cent in after-hours trading on Thursday after the company issued a weaker-than-expected revenue forecast for the fourth quarter and reported a large negative free cash flow for the past 12 months.
For the three months to end-September, Amazon posted a profit of nearly US$20.7 billion, down more than 2 per cent year on year. Earnings per share stood at US$1.89. Revenue rose about 12 per cent to more than US$201.9 billion.
Cloud business revenue grew 39 per cent to US$46 billion, slightly above expectations. Advertising sales revenue increased to more than US$19.6 billion, missing forecasts for the first time in seven quarters.
Amazon forecast fourth-quarter revenue of between US$240 billion and US$247 billion, below analyst expectations. It maintained its full-year capital expenditure forecast at about US$220 billion.
Over the 12 months to end-September, Amazon's free cash flow was negative US$42.4 billion, weighing on investor sentiment and contributing to the sharp after-hours decline.