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Technology earnings: Amazon, Meta, Alphabet, Microsoft drop in Q3 earnings


Amazon returned to profitability after two consecutive quarters of losses this year, but the company’s shares fell in after-hours trading on weaker-than-expected revenue as well as disappointing forecasts. for the fourth quarter.

The company reported revenue of $127.1 billion, less than the $127.4 billion that analysts surveyed by FactSet had expected it to draw from its business, which includes stores their online store, charge third-party merchants, and the cloud computing unit that dominates AWS.

One of the company’s big sales events this year, held in July for its Prime members, made a splash. Over the past two quarters, Amazon’s revenue has grown about 7%, the slowest rate in nearly two decades.

Amazon expects fourth-quarter revenue to come in between $140 billion and $148 billion, up 2% and 8% from last year’s Q4 respectively. Analysts surveyed by FactSet had expected an estimate of $155.1 billion. The guidance predicts adverse effects from fluctuations in exchange rates, the company said.

Shares of Amazon.com Inc. fell nearly 21% in after-hours trading.

However, the e-commerce giant said it earned $2.9 billion, or 28 cents per share, in the three-month period ending September 30. That figure is still down from with a profit of $3.15 billion, or 31 cents. per share, for the same period of one year ago.

Amazon’s results mimic those of other companies this week as the economy becomes more difficult to navigate with high inflation and rising interest rates.

On Monday, Alphabet, the parent company of Google and YouTubemissed revenue expectations as advertisers pulled back on their spending over fears of a potential recession. Microsoft announced a drop in profit amid weak PC sales.

And Meta, possess Facebook and Instagram, reported revenue declines for a second straight quarter amid a slump in their own ads and concerns about whether the company was spending too much money on the idea of ​​the metaverse. Both YouTube and Meta are also facing more competition from TikTok.

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