Shares in Amazon plunged 10% in after-hours trading after the retailer reported disappointing third-quarter sales.
The group missed Wall Street estimates of above $57 billion, when sales to the three months to September 30th rose 29% to $56.6 billion.
In a statement, Amazon boss Jeff Bezos highlighted the growth of the business.
“Amazon Business has now reached a $10 billion annual sales run rate and is serving millions of private and public-sector organizations in eight countries,” he said.
In Friday’s pre-market trading, shares fell to $1,600 a share – the biggest decline in January 2014.
The group’s fourth-quarter guidance is between $66.5 billion and $72.5 billion. This is below previous $73.79 billion.
Loop Capital’s Anthony Chukumba said in a note: “We were particularly impressed by the continued YoY operating margin expansion, which is consistent with our view the company has transformed into a ‘profit machine,’ driven by multiple tailwinds (most notably AWS, which posted an over 30% operating margin for the first time).”
Shares in Google’s parent company Alphabet (NASDAQ: GOOG) also fell on Friday after it missed analysts estimates for the third quarter.
Shares fell 8% in pre-market trading.
Despite the fall in shares Scott Galloway, a professor at NYU’s Stern School of Business, remained confident.
“From an investor’s standpoint, you are stupid not to own these stocks,” he said. “This company has incredible earnings power – because it is awesome to be a monopoly in a growing economy. The only thing standing between Google and continued growth is the government.”
Earlier this month, Amazon announced plans to its first Manchester office, creating 600 jobs.
UK manager for Amazon, Doug Gurr, has said the UK is “taking a leading role in our global innovation”.
“These are Silicon Valley jobs in Britain, and further cement our long-term commitment to the UK,” he continued.
“Manchester was at the heart of the industrial revolution and has a fantastic history of innovation. The city offers an incredibly talented workforce and a budding tech scene with some of the most exciting, fast-growing tech companies in the UK situated here.”