Amazon cut its winning streak short Thursday after unveiling a dissapointing third quarter earnings report.
Investors further soured when the company said a surge in spending on warehouses and video production during the holiday season would result in operating income ranging from $1.25 billion to zero in the fourth quarterâ€”considerably below the Wall Street consensus of $1.62 billion.
The company is now worth roughly $368.8 billion.
As a result, CEO Jeff Bezos, who owns an 18% stake in Amazon, also lost a pretty pennyâ€”roughly $4 billionâ€”as shares of the company slid 5%. Nonetheless, the executive, the third wealthiest man in the world, is still worth about $71 billion, according to the Bloomberg Billionaires Index.
Over the past 12 months, shares of Amazon however have risen 27% after the company posted quarter after quarter of profits. Just three months ago, Amazon revealed its its most profitable quarter yet, boosting shares to an all-time high of $847.21 in early October. The companyâ€™s stock is now down 7.7% from that high, and has lost over $30 billion in market cap.
Yet while the companyâ€™s third quarter earnings disappointed, it was still the tech giantâ€™s sixth straight quarter of profits. Revenue from Amazon Web Servicesâ€™ cloud platform, a segment that the company hopes will be a major growth-driver, also increased by 55% to $3.23 billion. That segment is expected to beat Amazonâ€™s 2016 sales goal of $10 billion by $3 billion.