American online retailer Amazon‘s third quarter turnover grew 29 % to 32.7 billion dollars (30 billion euro), but nevertheless, the analysts were not satisfied with its performance.
Loss outside of the United States
The discontent comes from the fourth quarter forecast: Amazon estimates a 42 to 45.5 billion dollar (39 to 42 billion euro) turnover, which did not sit well with analysts and shareholders. The stock dropped 6 % even though Amazon not only achieved turnover growth, but also a huge profit increase, from 79 million to 252 million dollars (230 million euro).
The majority of the company’s turnover still comes from the United States although its international markets also grew more than 25 % compared to the year before. However, that growth only came on the back of some immense investments, leading to a loss outside of the United States.
Luckily for Amazon, its Amazon Web Services continues to be very profitable, thanks to relatively low costs and a higher profit margin. That is why this profit offset the international loss completely.
