Amazon.com Inc (AMZN.O) shares fell the most in the four-year period on Friday after the outlook for Christmas sales failed to meet its targets and created fears that Wall Street tech favorites would finally be stronger Are exposed to competition.  Third quarter results were the second time that billionaire Jeff Bezos' company had missed its sales targets. Along with a similar disappointment from Google owner Alphabet (GOOGL.O), they caused a shockwave on the stock markets.  There were no rating downgrades by Wall Street analysts who had almost consistently supported the long-term prospects of the companies, but several said there were signs that both were facing tougher competition from tech peers and Amazon's The case of up to 9 percent in stocks knocked more than $ 80 billion of Amazon market value and relegated it behind Microsoft Corp. (MSFT.O) and Apple Inc (AAPL. O).
Now that the Seattle-based company is devouring retailers like Borders, Sears, and Toys "R" Us, it faces bigger challenges from multinational corporations making significant investments Davidson Forte said, "Google, Microsoft and Walmart … are harder to kill," he said.
Alphabet shares fell about 2 percent after beating sales over the past eight quarters after the estimates were exceeded.
The revenue from Amazon's international business, which accounts for 27.5 percent of total revenue, was the focus of the earnings decline. Growth halved compared to the previous quarter to 1
I do not see a real structural problem with Amazon, but almost every line in the business slows down a bit and we typically see a further slowdown in the retail sector in the fourth quarter and struggling to identify a catalyst, "said Barclays analyst Ross Sandler .
Wolfe Research Analyst, Scott Mushkin, saw two possible reasons why Amazon predicted a holiday shopping quarter to be weaker than Wall Street expected.
"You're worried about the macro. The second thing is that they are worried about the competition, "he said, noting that there were signs of a slowdown in the economy and that large retailers were aggressively pursuing strategies to compete with Amazon for Christmas sales.
Amazon expected Vacation Sales Refinitiv's analysts predicted an average of 10 to 20 percent growth to $ 72.5 billion, while analysts had predicted an average of $ 73.9 billion.
Operating profit guidance is between 2.1 and $ 3.6 billion
Several analysts described the company's outlook as conservative, stating that a significant decline in profits is highly unlikely.
"Overall, Amazon's growth is solid, including advertising, food, and pharmacy and retailers. as well as Amazon Business ($ 10 billion in revenue in eight countries) and Amazon Web Services, "Telsey Advisory Group analysts said.
Amazon, Alphabet, and Microsoft have all continued to work on cloud services, but with signs of slowing. [InthemostrecentquarterlyreportsMicrosoft'scloudcomputingbusinessAzurepostedrevenuegrowthof76percentupfrom89percentinthepreviousquarterwhileGoogle'sotherrevenuewhichincludesthecloudbusinessrose29percentyear-over-yeartofourPercentbelowCowen&CoanalystestimatesAmazon'scloudbusinessincreaseditsrevenue46percentto$668billionjustshortof$667billion "In general, the cloud business will continue to grow, but that's an indicator of marketability, said Sid Nag, senior director, cloud technologies un Services, Gartner Research.
Company shares were 7.2 percent at $ 1,654 in midday trading.
Reports by Supantha Mukherjee, Sonam Rai and Jasmine IS in Bengaluru and Jane Lee in Oakland, California; Editing by Peter Henderson, Patrick Graham and Bill Trott