Modest AWS results and weak advertising growth left Wall Street disappointed in Amazon’s third-quarter earnings
Amazon’s bold cloud forecast isn’t enough to stave off a stock drop
In short
Amazon shares fell following the release of its third-quarter financial results. Wall Street responded with disappointment to modest outcomes from the Amazon Web Services cloud division. Weak growth within the company's advertising business also compounded the negative market reaction. Even with a bold forecast for the cloud segment, the forward guidance was not enough to stave off the decline.
Key points
- Disappointing results from core growth drivers led directly to a decline in share prices.: Disappointing results from core growth drivers led directly to a decline in share prices.
- A bold forecast for cloud computing was insufficient to satisfy anxious Wall Street inves…: A bold forecast for cloud computing was insufficient to satisfy anxious Wall Street investors.
- Sluggish advertising performance combined with modest cloud figures weighed down total ma…: Sluggish advertising performance combined with modest cloud figures weighed down total market sentiment.