Jeff Bezos Loses $14 Billion as Amazon Stock Plunges

Jeff Bezos Loses $14 Billion as Amazon Stock Plunges

Amazon has announced their financial results for the third quarter, revenue was short of Street expectations, and earnings absolutely crushed analysts' estimates.

Amazon's shares took an unexpected down-turn, this week - seeing them overtaken by rival Microsoft as the world's second most-valuable company.

After graduating, he worked on Wall Street in New York City in a number of computer science positions. Amazon has relied on the growth of its Prime members, estimated at about 97 million in the US, who pay fees in exchange for shipping discounts, video streaming and other services.

Shares are up in early trade, at around 3.6%.

The world's largest retailer is facing hurdles to boost sales in global markets as well as increased competition at home from the likes of Best Buy, Target Corp and Walmart Inc, who are stepping up digital investments.

Sales totaled $56.576 billion, missing estimates of $57.1 billion.

"We don't see any real structural issue with Amazon but almost every line in the business is decelerating a tad, and we typically see another deceleration in retail in 4Q, hence are struggling to identify a catalyst", Barclays analyst Ross Sandler said. This is the 14th straight quarter that the online retail giant has reported a profit. Meanwhile, net income has increased to $2.9 billion in the third quarter, which is a big jump from the $256 million from this time past year.

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Now that the Seattle-based firm has devoured retail players like Borders, Sears and Toys "R" Us, it is facing bigger challenges from multinationals who are making substantial investments to compete, D.A. Davidson & Co analyst Thomas Forte said.

Google has been fined $7.7 billion for antitrust violations in Europe over the last two years, and heightened attention on privacy, security, competition and the rise of artificial intelligence tools has led investors to fret about potentially costly regulatory scrutiny in the United States and elsewhere.

In the latest quarterly reports, Microsoft's cloud computing business Azure marked revenue growth of 76 percent, down from 89 percent in the previous quarter. Fourth-quarter operating income is expected to fall between $2.1 billion and $3.6 billion. It purchased online pharmacy PillPack in June, which followed its US$13.7 billion acquisition of Whole Foods a year ago to jump start its grocery business.

Despite the lower-than-expected revenue Amazon's finance chief Brian Olsavsky said on a call with reporters Thursday: "We feel it's a really strong quarter".

Additionally, Amazon earlier this month said it will boost its minimum wage to $15 an hour, with the change taking effect next Thursday. Company CEO Jeff Bezos said, "The team is doing a fantastic job building and innovating for customers".

Shares down here, 2.9%.

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