Amazon shares fall after Q3 free cash flow deteriorates
In short
Amazon shares dropped 7% after its third-quarter results showed weaker free cash flow. The company also said it expects fourth-quarter revenue of $240 billion to $247 billion, below the market view at the midpoint.
This matters because investors were expecting stronger cash generation and holiday-quarter sales. The report does not say what caused the cash flow drop.
What the reporting says
Amazon shares fell 7% in extended trading after third-quarter results showed a sharp deterioration in free cash flow. The publisher-supplied summary also said Amazon expects fourth-quarter revenue of $240 billion to $247 billion, with the midpoint below analysts’ estimate of $244.5 billion. The reporting does not provide the free-cash-flow figure or explain the cause of the decline.
Why it matters
Amazon shares fell in after-hours trade after its third-quarter results showed a sharp deterioration in free cash flow. The publisher-supplied summary also said the company guided fourth-quarter revenue to $240 billion-$247 billion, with the midpoint below analysts’ $244.5 billion estimate. That could weigh on investor sentiment ahead of the holiday quarter, but the reporting does not state why free cash flow weakened.