Amazon slides on light fourth-quarter sales estimates, cash burn
An Amazon delivery vehicle drive along a street in downtown San Francisco, California, U.S., January 26, 2026. REUTERS/Carlos Barria
Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
Oct 29 : Amazon.com on Thursday reported a massive cash burn in the third quarter and forecast holiday-quarter revenue largely below Wall Street estimates, sending shares lower.
Investors soured on shares of the company, driving them down about 5 per cent in extended trading. The shares had declined 4.3 per cent in regular trading to end at $243.79.
The Seattle-based retailer expects revenue of between $240.0 billion and $247.0 billion in the fourth quarter, compared with analysts’ average estimate of $244.51 billion, according to data compiled by LSEG. The company said it burned $42.4 billion on a trailing 12-month basis in the September quarter, driven by capital expenditure of $77.26 billion which was some $20 billion above estimates, according to data compiled by LSEG.
Amazon reported cash burn of $7.6 billion in the prior quarter, and generated $14.8 billion in the third quarter of last year.
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
Tiny puzzle, mighty brain teaser
Mini Crossword
Small grid, big challenge
Word Search
Spot as many words as you can
Jesse Cohen, a senior analyst at Investing.com, pointed to Amazon’s free cash flow and “weak guidance” as reasons for the share decline. “Amazon’s third-quarter report landed as a double disappointment.”
CLOUD BUSINESS DRIVES GROWTH
Revenue at Amazon Web Services rose 39 per cent to $46 billion in the third quarter ended September, compared with analysts’ estimate for a 38.2 per cent increase to $45.61 billion, according to data compiled by LSEG. AWS revenue recorded a 37 per cent jump in the second quarter.
The company also maintained its annual capital spending forecast of about $220 billion.
The downbeat fourth-quarter outlook signals US retailers could face pain in the holiday season, as consumers tighten shopping budgets amid higher gasoline prices and the rising cost of living.
Still, recent industry forecasts predict holiday sales will accelerate from last year. The National Retail Federation earlier this month predicted a 4.2 per cent jump in total US holiday season sales.
While retail sales account for the majority of Amazon’s revenue, investor focus has shifted sharply toward its cloud computing business, Amazon Web Services, in recent years, as the tech company spends heavily to build out data centers and compete in the global AI race.
Amazon’s cloud unit grew at its fastest pace in nearly five years.
At its e-commerce business, Amazon has been rolling out faster delivery services globally and expanding to more rural areas in the US to draw more shoppers.
Source: Reuters
Sign up for our newsletters
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST
Tap here to return to FAST
FAST
