Amazon reported much lower earnings than expected and shares declined more than 2% in late trading.
The e-commerce giant reported net income of $197 million, or 40 cents a share, on sales of $38 billion, a profit decline of 77% from the same quarter a year ago. Analysts on average expected Amazon to report earnings of $1.41 a share on sales of $37.2 billion.
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The company’s spending cut into profit, as fulfilment costs — the amount Amazon spends to fill customers’ orders on its e-commerce platform — rose about 33% from a year ago and spending on technology and content increased by about 43%. Amazon stock traded at all-time highs of $1083.00 before settling at $1046.00.
The next key support level will be found at $975.00. A break of that price could extend down to the June low of $920.00.
Amazon
