Amazon.com, Inc AMZN, which had a revenue miss in its third-quarter earnings, is preparing to tighten its belt in the fourth quarter.
What Happened: The company’s CFO Brian Olsavsky said the company encountered “moderating sales” and saw foreign currency headwinds in the third period and expects these impacts to remain in place during the fourth quarter.
Olsavsky said, during the company’s earnings call, on Thursday, “As we’ve done at similar times in our history, we’re also taking actions to tighten our belt, including pausing hiring in certain businesses and winding down products and services where we believe our resources are better spent elsewhere.”
The executive said Amazon seeks to strike the “right balance” between investing for its customers over the long term and driving “operational efficiency improvements and accomplishing more with less.”
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Why It Matters: Amazon guided fourth-quarter operating income in the range of zero and $4 billion.
The aim of balancing investments with the “macroeconomic environment” was also stated by CEO Andy Jassy.
Amazon reported third-quarter revenue of $127.1 billion, a rise of 15% year-over-year. The figure was less than the $127.84 expected by the Street, according to Benzinga Pro data.
Price Action: On Thursday, Amazon shares fell nearly 13% in the after-hours trading to $96.83 after closing 4.1% lower at $110.96 in the regular session.
Image and article originally from www.benzinga.com. Read the original article here.