What happened to Amazon today?Today, after the market closed, Amazon released its Q3 earnings and revenue, as well as other financials. It outperformed earnings per share by a significant margin, so why did Amazon drop 14% in after-hours trading? Well, the answer lies in a few things which I will cover today.
1. Amazon Web Services (Includes cloud computing, a major component of Amazon's revenue) only brought in 20.5 Bil, compared to forecast of 21 BIl.
2. Due to the above reason, Amazon's revenue was lower than expectations of 127.63 Bil, only achieving 127.1 Bil, with much, much slower growth compared to the previous quarterly earnings and revenue.
3. Amazons sluggish growth in revenue can only mean one thing -- A weaking Consumer. And as the Fed hikes interest rates quickly, Amazon's revenue may go down along with inflation.
4. Guidance from Amazon shows a weak Holiday quarter (weak sales and revenue)
So, this is just an update on the latest news to keep you updated. If you want me to continue this type of posts, please comment!
