Amazon earnings fell below Wall Street expectations as reported yesterday. The eCommerce and Cloud giant posted a revenue of $32.71b at 52 cents a share versus $32.69b at 78 cents a share in the third quarter. Their stock fell 5 percent yesterday on the news.
In North America, sales figures stood at $18.87b versus $19.09b from analysts but still beats Wall Street’s $10.44b expectations.
The holidays are here and Amazon is expected to have strong sales but even its outlook for the holiday season falls below expectations. They expect sales between $42b and $45.5b. Analysts were expecting $44.58b in sales and the median of the figures provided by Amazon gives $43.75b.
Amazon Web Services (AWS); the Cloud arm of the company continues to beat in revenues. In the second quarter of this year, AWS revenue was $2.88b in the second and that was a 58 percent year on year increase. In the third quarter, revenue stood at $3.23b versus $3.17b expected and this represents a 54.9 percent increase year on year.
AWS has seen some stiff completion from the likes of Microsoft Azure. Google Cloud, IBM SoftLayer among others. All of these companies have recorded a growth in revenue with respect to their Cloud divisions and this just shows that there is still a strong Cloud services demand out there.