Amazon shares fall after first-quarter sales forecast misses estimates

Amazon shares fall after first-quarter sales forecast misses estimates

Amazon.com Inc on Thursday forecast first-quarter sales below Wall Street estimates, as it faces regulatory hurdles in India and a slowdown in e-commerce sales in Europe.

Shares of the company fell 1.1 per cent to US$1,700 in trading after the bell.

Amazon began removing a wide array of products from its India website late on Thursday to comply with the new foreign investment curbs that kick in on Feb.1 and disallow companies from selling products via vendors in which they have an equity interest.

The company forecast net sales of between US$56 billion and US$60 billion for the first quarter, missing the analyst average estimate of US$60.77 billion, according to IBES data from Refinitiv.

Net sales for the fourth quarter rose 19.7 per cent to US$72.38 billion and beat the analyst average estimate of US$71.87 billion on the back of a strong holiday season.

Amazon’s net income rose to US$3.03 billion, or US$6.04 per share, in the quarter ended Dec.31 from US$1.86 billion, or US$3.75 per share, a year earlier, which included a tax gain.

Net sales in North America, its biggest market, jumped 18.3 per cent to US$44.12 billion in the reported quarter.

Revenue in its Amazon Web Services cloud business surged 45.3 per cent to US$7.43 billion to beat estimate of US$7.26 billion.

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