Earnings Miss and Tepid Guidance Crater Amazon Stock
When we left e-commerce giant Amazon.com (NASDAQ: AMZN) three months ago, investors weren't sure what to think. The tech giant had delivered Q2 revenue that grew 20% year over year, but the company's one-day shipping initiative had eaten into profits. While the move was originally estimated to cost $800 million in the second quarter, the reality was worse -- it not only sent profits down, but also resulted in a "cost penalty" in the Q3 guidance.
Apparently, that cost penalty wasn't enough. Earnings declined year over year for the first time since Q2 2017, sending shares down more than 8% in the wake of the company's third-quarter earnings report.
Image source: Amazon.
Source Fool.com
