Amazon stock and comments on his income statement

Amazon shares plunged Friday after the third quarter results, but Wall Street posted positive and negative results.

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Admittedly, the results published by Amazon have had their share of bad news. He showed in the course of action Amazon. It closed down 7.8% to 1,642.81 on the stock market today. The stock is down 20% from its record of 2.050.50 on September 4th.

However, analysts are encouraged by the performance of its Amazon Web Services unit.

Report Thursday late, Amazon (AMZN) beat earnings estimates, but revenues were below expectations. Revenue growth in its core e-commerce business slowed for the second consecutive quarter from the same period last year, falling to 11% to $ 29 billion. This was partly due to the slowdown in international sales.

"At the moment, the main business of the retail business is entering a phase of slower growth," said Edward Yruma, KeyBanc Capital's market analyst in a note to clients.

"We believe that Amazon's decision to raise its minimum wage to $ 15, generating salary increases for more than 400,000 employees, and, to a lesser extent, running costs (fuel, USPS other carriers) are probably headwinds, "he writes.

Amazon Action Performance

Amazon also presented a revenue forecast for the fourth quarter that has not been encrypted. The fourth quarter business figure is expected to be about 3% lower than the upper limit of estimates, which one analyst has called "yellow flag". Amazon also guided its operating profit to a level of 8% below.

For its fourth quarter, Amazon forecasts revenues between $ 66.5 and $ 72.5 billion. The midpoint of $ 69.5 billion is lower than forecast for $ 73.9 billion.

But his Amazon Web Services unit continues to be an asset, said Jefferies analyst Brent Thill. He also loves Amazon's nascent advertising activities.

"Our audits continue to indicate that AWS is the absolute benchmark for public cloud and management, which has highlighted the recent momentum with corporate clients," said Thill in his note to customers. Amazon's advertising activities also continued their momentum, he wrote.

"Although still relatively modest, Amazon's advertising revenue grew by 55% over the same period last year, reaching $ 2.5 billion, a rate of annual turnover close to $ 10 billion, "writes Thill. "We believe this segment creates halo effects for the retail sector, while generating another higher revenue stream for Amazon."

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