Amazon's earnings shocker erases $40 billion of market value | Markets Insider

t
• Amazon's third-quarter earnings, announced Thursday, missed Wall Street estimates.
t
• The tech giant tumbled as much as 4.8% in early trading Friday.
t
• That amounts to roughly $40 billion of market value wiped out.
t
• View Business Insider's homepage for more stories.

Amazon fell short of expectations in its latest earnings report, and it's cost the company roughly $40 billion of market value.

The tech giant slid as much as 4.8% in early trading Friday, a day after missing Wall Street estimates for its third-quarter earnings, which came in at $4.23 a share compared with the expected $4.62.

Amazon's market cap at the time of writing fell to $840.4 billion from $880.9 billion as of Thursday's market close.

The company did, however, beat estimates on revenue, which was $70 billion compared with estimates of $68.8 billion.

In its report, Amazon said it planned to make one-day shipping the new standard when it came to its Prime delivery service. Its Amazon Web Services cloud unit saw revenue increase 35% from the same quarter last year to nearly $9 billion.

It wasn't just Amazon that dropped in value after the earnings shocker, as CEO Jeff Bezos lost the title of the world's richest person. His net worth was set to drop to $102.8 billion, placing him second behind Bill Gates, according to Bloomberg, after sliding $8.2 billion.

Markets Insider