Amazon Shares Drop 9% After Q3 Miss as Q4 Revenue Guide Risks Falling Below $244.5 Billion
Updated
Updated · Deadline · Oct 29
Amazon Shares Drop 9% After Q3 Miss as Q4 Revenue Guide Risks Falling Below $244.5 Billion
3 articles · Updated · Deadline · Oct 29
Summary
Amazon shares fell as much as 9% after hours and dropped below $230 after the company posted Q3 EPS of $1.89 and revenue of $201.9 billion, both short of Wall Street forecasts.
The earnings decline reflected a tough comparison with $9.5 billion in pre-tax gains tied to Anthropic in Q3 2025, while Amazon said moving Prime Day into Q2 reduced reported Q3 revenue growth by about 4 percentage points.
Q4 revenue guidance of $240 billion to $247 billion left room to miss the Street's $244.5 billion target, adding to investor unease over whether heavy AI spending is producing fast enough returns.
AWS offered a brighter spot: CEO Andy Jassy said AI-driven investment helped lift unit revenue 39% and pushed its annual run rate to $184 billion, even as advertising growth slowed to 12% at $19.6 billion.
The selloff landed in a broader tech reset, with investors also punishing other AI-heavy names this week after Alphabet's 12% plunge and recent declines in Nvidia and Meta.