Google's parent company Alphabet posts $33.74 billion United States dollars Q3 revenue

Amazon sinks as revenue growth disappoints

The third-quarter results were the second time running that billionaire Jeff Bezos' firm had fallen short of sales targets and, allied to a similar disappointment from Google-owner Alphabet GOOGL.O , they sent a shockwave through stock markets.

Its shares declined as much as 9.4 per cent in extended trading after the Seattle-based company forecast that revenue will be $US66.5 billion to $US72.5 billion in the three months ending December 31, the Seattle-based company said on Thursday in a statement, falling short of analysts' average estimate of $US73.8 billion. 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 previous year.

Google ad sales contributed 86 percent of revenue, but growth slowed to 20 percent from almost 24 percent last quarter. Since the end of September, analysts have cut their 2019 revenue estimates by 1%.

Q4 EPS (forecast): The company didn't provide earnings guidance for the holiday period.

Amazon.com, Inc. (NASDAQ: AMZN) shares have taken a slight hit after the company's third-quarter earnings release.

"Shares are up 52% YTD, hence this kind of "growth scare" is likely to weigh on sentiment in the near term, but ultimately will work itself out (likely by 1Q19)", Barclays analyst Ross Sandler wrote in a client note.

Amazon's third-quarter report arrives a few weeks before the holiday shopping season, when Amazon and other retailers enjoy a weeks-long spike in sales.

"Overall, Amazon's growth trajectory remains solid, including advertising, grocery, pharmacy, and specialty retail, as well as Amazon Business ($10 billion in sales in eight countries) and Amazon Web Services", Telsey Advisory Group analysts said.

In a time of low interest rates, Amazon and Google have offered investors the chance to hitch a ride on the fast-growing e-commerce, digital advertising and cloud-computing markets buoyed by a steady global economy, Bloomberg explained. Revenue jumped 29 percent to $56.6 billion, below a projected $57.10 billion.

That's a 21 percent increase compared to the same time past year. A big reason behind that was the absorption of Whole Foods Market and the 87,000 people who work there.

The logo of Amazon is seen at the company logistics centre in Boves, France, August 8, 2018.

Amazon has already committed to invest at least $5 billion in India, and is expected to commit even more investments towards India, where it is now locked in a bruising market share battle against local rival and Walmart-backed Flipkart.

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