Amazon shares plunge on disappointing Christmas sales forecast

 

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The Independent Online

Amazon shares fell more than 10 per cent after the company gave a disappointing Christmas sales forecast and posted a wider loss than expected for the third quarter.

Amazon's net loss widened to $437 million, or 95 cents per share, from a $41 million loss, or 9 cents a year ago. That came in well above analyst forecasts looking for a loss of 74 cents a share.

The retailer also warned it expects net sales of between $27.3 billion and $30.3 billion for the Christmas quarter, the busiest time of the year, lagging the $30.89 billion analysts were hoping for.


Amazon has been investing heavily in an array of new products as it works on trying to grow its Amazon Prime membership base. The new products include its Fire smartphone, music and video streaming services and new versions of its Kindle tablet. 

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Investors have been patient with thin profits, but that patience might not last. Amazon's shares are down 22 per cent this year and Thursday's disappointing results saw more than $15 billion wiped off of its market value.

Additional reporting PA

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