Amazon.com Inc. missed estimates in the third quarter, sending its shares down as much as 19 percent in after-hours trading.
For the period ended Sept. 30, the parent of Zappos.com earned a net income of $63 million, or 14 cents a share, a 73 percent drop from $231 million, or 51 cents, in the same period a year ago.
Revenue advanced 44 percent to $10.88 billion, but analysts were looking for $10.93 billion, as polled by Yahoo Finance. Earnings were also expected to come in at 24 cents a share.
Expenses, mainly related to investment in fulfillment centers for the Kindle, skyrocketed in the quarter, leaving operating income at $79 million, down from $268 million a year ago.
For the fourth quarter, Amazon expects net sales to be between $16.45 billion and $18.65 billion, representing year-over-year growth of between 27 percent and 44 percent.
At quarter’s end, the Internet retail giant had $2.8 billion in cash and cash equivalents, and $2.3 billion long-term debt.