Amazon Shares Crash After Mixed Earnings Report

Shares of Amazon (NASDAQ: AMZN) crashed in Thursday extended trading session as the e-commerce giant reported a mixed earnings report.

The good – operating cash flow increased 49% to $14.6 billion for the trailing twelve months, compared with $9.8 billion for the trailing twelve months ended September 30, 2015. Net sales increased 29% to $32.7 billion in the third quarter, compared with $25.4 billion in third quarter 2015. The favorable impact from year-over-year changes in foreign exchange rates throughout the quarter on net sales was $52 million.

The bad – reported third-quarter adjusted earnings of $0.52 a share, missing Wall Street’s projection of $0.78 a share. Revenue for the e-commerce giant came in at $32.71 billion compared with analysts’ estimate of $32.69 billion. Amazon reported $18.87 billion in North America sales during the quarter, which is below the $19.09 billion expected by analysts.

One product had a lot of attention from Jeff Bezos, founder and CEO of Amazon, who said, “Alexa may be Amazon’s most loved invention yet — literally — with over 250,000 marriage proposals from customers and counting… And she’s just getting better. Because Alexa’s brain is in the cloud, we can easily and continuously add to her capabilities and make her more useful — wait until you see some of the surprises the team is working on now.”

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