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Shares of Amazon.com Inc sold 10% of their business before the market opened, as its sales forecasts failed to meet the targets set on Wall Street, raising fears that the boom in online retailer is losing momentum.
The third quarter results released Thursday night mark the second time billionaire Jeff Bezos' company has failed to meet the high sales targets set by Wall Street. The report also triggered aftershocks in the global stock markets.
The fall in inventories, if it occurs again at the opening of US markets, subtract nearly 90 million dollars from the market value of Amazonso that would be behind Microsoft Corp. and Apple Inc.
However, the credit rating of Wall Street analysts has not been lowered almost universally, which has supported the long-term prospects of the company.
Only three brokerages reduced their target prices on the stock and four others have raised, saying that Amazon's long-term growth record remains intact.
"Stocks have increased 52% since the beginning of the year, so this kind of" growth panic "will probably weigh on short-term confidence, but it will eventually pass (probably in the first quarter of 2019)" he wrote. Ross Sandler, analyst at Barclays, in a note to customers.
Amazon is struggling to increase sales in international markets, in addition to growing competition from companies such as Best Buy, Target Corp and Walmart Inc, which are increasing their digital investments.
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