Amazon's Holiday Forecast Misses Expectations
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Amazon.com forecast sales and profit for the holiday quarter that missed analysts’ projections, underlining the limits to Chief Executive Officer Jeff Bezos’s strategy of spending big to fuel growth.
Revenue for the current period will be $27.3 billion to $30.3 billion, the Seattle-based company said in a statement today, while profit excluding some items will range from a loss of $570 million to a gain of $430 million. Analysts on average projected sales of $30.9 billion and profit of $460.5 million, according to data compiled by Bloomberg.
The forecast is stoking investor concerns that sales growth will no longer make up for Amazon’s lack of profit. Net income has been elusive as Mr. Bezos spends on products such as Kindle Fire tablets and smartphone and distribution centers, as well as drones and original programming. Investors have punished Amazon for its losses, with shares down more than 20% this year. That helped Chinese company Alibaba Group Holding become the world’s largest e-commerce provider by market capitalization upon its initial public offering last month.
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