Amazon shares slide on weak holiday outlook and record cash burn

thestar.com.my —

Amazon shares fell nearly 7% in extended trading Thursday after the company reported massive third-quarter cash burn and fourth-quarter revenue guidance largely below Wall Street estimates. Amazon forecast holiday-quarter revenue between $240 billion and $247 billion, versus analysts' average estimate of $244.51 billion. The company burned $42.4 billion on a trailing 12-month basis, driven by capital expenditure of $77.26 billion, roughly $20 billion above estimates. CEO Andy Jassy defended the strategy, citing strong AWS growth of 39% to $46 billion and predicting "meaningfully more" capital spending next year. Advertising sales rose just 12%, missing estimates for the first time in seven quarters.


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