(CercleFinance.com) – Amazon fell more than 10% this Friday on Wall Street following the publication of a sales forecast for the fourth quarter that was well below market expectations.
The American Internet giant announced last night that it forecast net sales of between 140 and 148 billion dollars over the last three months of the year, a range well below the consensus established at 155 billion.
‘The recession may already be on the tip of its nose’, worried BofA analysts this morning in a reaction note.
‘Admittedly, Amazon is gaining market share in online commerce, but its prospects suggest a much less prosperous end-of-year holiday season than in 2021’, underlines the broker.
In fact, investors seem to be especially alarmed by the deceleration in the growth of its cloud computing subsidiary, Amazon Web Services (AWS), which has so far been the engine of activity.
The division’s revenues increased by 28% in the third quarter, against +33% in the previous quarter.
In total, the turnover of the third quarter increased by 15% to 127 billion dollars, a figure lower than the average consensus which aimed at 128 billion.
Amazon’s net profit fell to $2.9 billion, or 28 cents a share, from $3.2 billion, or 31 cents a share, a year earlier.
For comparison, analysts on average expected EPS of 22 cents.
Following this mixed publication, Amazon shares lost 10.1% on Friday morning, while maintaining a stock market valuation above the symbolic threshold of 1,000 billion dollars.
This level is still very far from the capitalization of 1.9 trillion dollars that the Seattle group still posted in November 2021.
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