Amazon.com reported a fall in profits for the third quarter and said it expects a further drop in Q4 on the high costs of its one-day delivery for Prime customers during the holiday season. CEO Jeff Bezos said the one-day delivery is "a big investment, and it’s the right long-term decision for customers".
Operating profit fell to USD 3.2 billion in Q3 from USD 3.7 billion a year earlier, slightly ahead of the company's guidance for the period. The net profit dropped to USD 2.1 billion from USD 2.9 billion. Revenues were still up 24 percent to USD 70.0 billion, at the high end of Amazon's outlook.
For the fourth quarter, Amazon forecast sales of USD 80-85 billion, equal to growth of 11-20 percent year-on-year. Operating profit is estimated at USD 1.2-2.9 billion, down from USD 3.8 billion in Q4 2018.
