Amazon badly misses on earnings and revenue, gives disappointing fourth-quarter guidance : r/stocks

https://www.cnbc.com/2021/10/28/amazon-amzn-earnings-q3-2021.html

Earnings: $6.12 vs $8.92 per share expected, according to analysts surveyed by Refinitiv

Revenue: $110.81 billion vs $111.6 billion expected, according to analysts surveyed by Refinitiv

Revenue from Amazon Web Services totaled $16.11 billion in the quarter, up almost 39% from a year ago, according to a statement. Analysts polled by StreetAccount had expected $15.48 billion. Revenue had grown 37% in the second quarter.

The stock is dropping almost 5% after the earning release. The EPS miss is due to the tough comparison from last year 3rd quarter when Amazon enjoyed the pandemic e-commerce advantage. The miss on revenue also disappointed investors. The stock will still benefit going forward as it is dominating in cloud and e-commerce penetration is still in early stage.