|Wall Street Journal graphic|
The Wall Street Journal reports Amazon's third-quarter profit fell 26% from a year ago to $2.1 billion, or $4.23 a share, missing analysts’ consensus estimate of $4.59 a share, according to FactSet. That was its first profit decline since 2017, and followed a second quarter in which the company ended its streak of record quarterly profits and missed analyst expectations.
Revenue in the latest period rose 24% to $70 billion—better than analysts’ estimates—compared with a 20% increase three months earlier. The third quarter included Prime Day, a July shopping event created to sign up new Prime subscriptions by offering members steep sales discounts.
Amazon’s profit miss sent shares down more than 7% in after-hours trading Thursday. Before the late-afternoon report, the stock was up nearly 16% this year, giving the company a market value of around $881 billion.
Amazon’s advertising business registered $3.6 billion in sales, a 43.7% increase from the year-earlier period. The unit, which sells advertising space in the form of sponsored products in search and display ads, has become another cash cow for the company.