Shares of Amazon (AMZN) - Get Report were falling sharply after hours Thursday after the company reported a wide third quarter earnings miss, as well as weaker-than-expected revenue guidance for the fourth quarter.
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Amazon reported earnings of $4.23 per share on revenue of $69.98 billion. Analysts were expecting the company to report earnings of $4.62 per share on revenue of $68.81 billion. And for the seasonally strong fourth quarter, Amazon said it expects revenue of $80 billion to $86.5 billion, below an $87.39 billion consensus estimate.
The big miss for Q3 was the company's AWS segment, which reported revenue of $9 billion, falling short of FactSet's consensus $9.1 billion estimate.
Amazon shares were down more than 8% Thursday after-hours.
The company also said expects operating income to fall sharply from the previous year, to between $1.2 billion and $2.9 billion from the $3.8 billion it reported last year.
Amazon has stated that it will once again sacrifice near-term profits to fund projects that will help drive growth in the future. But investors don't seem to be embracing that pitch after the most recent earnings release.
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