Profits Soar, but Amazon’s Shares Drop
- Amazon posts record profits of $2.9bn in Q3
- Shares fall by 9% despite record profits
- Net sales increase to $56.6bn, below analysts’ estimates
- Q3 profit marks largest to date
- Amazon Business reaches $10bn annual sales run rate
Online retail giant Amazon has posted record profits for Q3 in its latest financial results for the period ending 30 September 2018. Despite the company reporting its net income had increased to $2.9bn (£2.3bn), its shares fell by 9% as its sales and sales forecast came in below Wall Street estimates. Net sales increased 29% to $56.6bn (£44.1bn) in Q3, compared with $43.7bn (£34bn) the same period in 2017 but was lower than the $57.1bn (£44.5bn) analysts had estimated. In Q3 last year, Amazon saw a net income of $256m (£199m). Operating income increased to $3.7bn (£2.9bn) during the three-month period, compared with operating income of $347m (£270m) in the previous year. Jeff Bezos, Amazon founder and CEO, said: “Amazon Business has now reached a $10bn (£7.8bn) annual sales run rate and is serving millions of private and public-sector organisations in eight countries. And we’re not slowing down – Amazon Business is adding customers rapidly, including large educational institutions, and more than half of the Fortune 100. “These organisations are choosing Amazon Business because it increases transparency into business spending and streamlines purchasing, with increased control. The team is doing a fantastic job building and innovating for customers.”
Factuality Level: 8
Factuality Justification: The article provides accurate information about Amazon’s financial results, including profits, net income, sales figures, and growth of Amazon Business. It also includes a relevant quote from Jeff Bezos. However, it could provide more context on the overall market performance or industry trends to make the information more comprehensive.
Noise Level: 3
Noise Justification: The article provides relevant information about Amazon’s financial results and highlights the company’s growth in its business segment. However, it could benefit from more analysis or context on the reasons behind the profit increase and the impact of these results on the market and economy.
Financial Relevance: Yes
Financial Markets Impacted: Amazon’s shares fell by 9% due to lower-than-expected sales and sales forecast
Financial Rating Justification: The article discusses Amazon’s financial results, including record profits and the impact on its stock market performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:
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