Amazon shares retreat, badly misses revenues

Amazon shares fell more than 4% in extended trading on Thursday after the company reported weaker-than-expected results for Q3 and delivered disappointing guidance for the critical holiday period.

Earnings amount to $6.12 versus $8.92 per share estimates. Revenue is $110.81 billion vs $111.6 billion estimates.

Amazon is facing decelerating sales growth as consumers go back to physical stores and the company faces supply chain challenges.

Revenue in the third quarter rose 15%, down from 37% growth in the same period a year ago. For the fourth quarter, Amazon forecast sales between $130 billion and $140 billion, representing growth between 4% and 12%.

Amazon CEO Andy Jassy said the company expects to take on “several billion dollars” of extra costs in its consumer business in the fourth quarter as a result of labor shortages, higher employee costs, global supply chain constraints and increased freight in addition to shipping costs.