Amazon Q3 Earnings Takeaways : Revenue Miss, Weak Guidance Sends Stock Down

Amazon.com Inc AMZN reported third-quarter financial results after market close Thursday. Here are the key highlights for investors.

What Happened: Amazon reported revenue of $110.8 billion in the third quarter, up 15% year-over-year. The revenue figure missed analysts’ estimates of $111.6 billion.

Amazon reported earnings per share of $6.12, coming up shy of $8.92 consensus estimate.

“We’ve always said that when confronted with the choice between optimizing for short-term profits versus what’s best for customers over the long term, we will choose the latter – and you can see that during every phase of this pandemic,” said Amazon CEO Andy Jassy.

What’s Next: Amazon is guiding for fourth-quarter revenue to be in a range of $130 billion to $140 billion, which would be a year-over-year increase of 4% and 12%, respectively. This is below the Street consensus estimate of $142.1 billion.

Related Link: Here's What This Investor Thinks Could Really Move The Stock When Amazon Reports Earnings 

Other Highlights: The company highlighted its Black Friday holiday sales starting even earlier this year, dating back to Oct. 4.

Same-day delivery was added to nine cities during the quarter, bringing the company’s total to 15 cities in the U.S.

Amazon.eg was launched in the quarter, bringing Amazon to the Egypt market.

Amazon One, which lets customers enter a store and pay using their palm, was added to third-party locations in the third quarter by AXS and Climate Pledge Arena. The technology is also used at 70 Amazon and Whole Foods stores.

The company highlighted the launch of “New World,” a multiplayer PC game. The game was the highest played new game on Steam this year and was the most watched game on Twitch during its launch week.

Prime Video was highlighted by the announcement of several upcoming movies and shows including The Lord of the Rings series premiering Sep 2, 2022. “Cinderella,” an Amazon Original, was the number one streamed movie across all platforms during its opening weekend in the quarter.

AMZN Price Action: Shares ere down 4% to $3,302.47 in after-hours trading.