Amazon stock falls on revenue miss, rising costs due to macroeconomic conditions – TechCrunch

It is difficult to feel bad for a company valued at around $1.75 trillion. So we won't. Amazon stock shareholders are feeling a little water this afternoon, however. Amazon today reported its Q3 2021 results after the bell. It detailed its recent performance, which included a top and bottom miss on revenues.
The e-commerce and cloud computing giant saw $110.8 billion in revenue during the three months ending September 30, 2021. This is 15% more than the same period last year. Amazon reported net income of $3.2 Billion, or $6.12 per Share.

Analysts expected the company would post revenue of $111.6billion and earnings per share of $8.92. On a year-overyear basis, the company's net income dropped by 49%.

Amazon shares are down just over 5% at the time we write this article.

While Amazon's Q3 results were disappointing, the AWS unit reported an increase in revenue year-over-year. This gives the company something to cheer about. However, its Q4 results may be overshadowed by its trailing ones. Andrew Jassy is the new CEO of the company.

We expect to incur additional costs of several billion dollars in the fourth quarter for our Consumer business. This is due to increased labor supply, wage costs, global supply chain issues, and higher freight and shipping costs. All while trying to minimize the impact on customers, selling partners, and other parties this holiday season.

Executive argued that customers-forward is the best way to frame impending costs. He also argued that it was reasonable to take short-term losses in order for long-term gains. The promise of future cash flows was not enough to satisfy investors and prevent the company's market cap from being reduced by just a few billion.

We noted that it is difficult to feel bad for Amazon, given the fact that Amazon reported net income of over $1 billion per month during Q3.

TechCrunch pays the most attention to cloud revenues. Let's take a look at the data. Here's how AWS performed in terms of revenue and operating income.

This amounts to $4.5 billion in year-over-year revenue growth and $1.5 billion in operating income. In the year-over-2018 period, revenue and operating expenses increased by 39% and AWS grew by 39% respectively. Let's take a closer look at pure growth metrics.

This data set is important because AWS is Amazon's fastest-growing segment. The company's e-commerce operations are the main reason it is in the news, but its quieter cloud group is driving its growth. Is it possible for investors to demand that the company is split in order to unlock its value?