Amazon shares drop 9% after Q3 earnings miss Wall Street forecasts

Amazon shares fell up to 9% in after-hours trading Thursday after the company reported third-quarter earnings that missed Wall Street forecasts, extending a broader tech sector selloff. Earnings per share were $1.89, down from $1.95 a year earlier, while revenue rose 12% to $201.9 billion, both below analyst expectations of $1.97 and $202.25 billion. Amazon attributed the earnings decline to $9.5 billion in pre-tax gains from Anthropic investments in the prior-year quarter, and projected fourth-quarter revenue of $240–247 billion, potentially missing the $244.5 billion consensus. The drop follows a 4% decline during regular trading, with shares falling below $230. Investors have been punishing tech stocks this week over concerns about returns on heavy AI spending, including a 12% plunge in Alphabet shares on Wednesday after its earnings miss.