Amazon shares plunge on weak sales forecast

Amazon shares plunge on weak sales forecast


Andy Jassy, CEO of Amazon and then CEO of Amazon Web Services, speaks at the WSJD Live conference in Laguna Beach, California, October 25, 2016.

Mike Blake | Reuters

Amazon shares plummeted as much as 10% in extended trading on Thursday after the company issued a revenue forecast that trailed analysts’ estimates.

Here’s how the company did:

  • Loss: Loss per share of $7.56
  • Revenue: $116.44 billion vs. $116.3 billion expected, according to Refinitiv

Here’s how other key Amazon segments did during the quarter:

  • Amazon Web Services: $ 18.44 billion vs. $18.27 billion expected, according to StreetAccount
  • Advertising: $7.88 billion vs. $8.17 billion expected, according to StreetAccount

Amazon recorded a $7.6 billion loss on its Rivian investment after shares in the electric vehicle company lost more than half their value in the quarter. That resulted in a total net loss of $3.8 billion.

Amazon said it expects second-quarter revenue of $116 billion to $121 billion. Analysts were projecting sales of $125.5 billion, according to Refinitiv.

This story is developing. Check back for updates.

WATCH: Amazon CEO Andy Jassy: This has been a time of extraordinary growth



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