Amazon’s streak of record quarterly profits is over

For three straight quarters, Amazon posted a new record for profits, shooting new fear into competitors who have mocked it for not making money. Well, the streak is over.

Jeff Bezos’ company did post a profit in the third quarter — $252 million or 52 cents per share — but it was both below analyst estimates of 78 cents a share and well below the record quarterly profit of $857 million that Amazon recorded in the second quarter.

The company’s forecast of fourth-quarter operating income of between $0 and $1.25 billion also is below analyst expectations, even at the top end, according to the earnings cheat sheet from RBC Capital’s Mark Mahaney. The company’s shipping costs rose 43 percent in the quarter as Amazon continuously works to speed up delivery times.

Amazon’s stock was trading down six percent in after-hours trading.

On the bright side, Amazon did meet revenue expectations with $32.7 billion in net sales for the quarter. This quarter also marked the six quarter in a row that Amazon has registered some profit.


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