Amazon Stock Sinks 10 Percent on Weak Earnings
Shares of Amazon.com were sinking 10 percent in after-hours trading after the online retailer posed disappointing earnings but surging revenue.
The company also reported strong demand for its Amazon Prime service, which gives customers shipping discounts and access to streaming movies and TV shows.
Prime has been so popular that Amazon has resorted to limiting new membership signups during peak periods. Its Prime Instant Video, a competitor to Netflix, includes access to 40,000 TV episodes and movies.
Amazon said it earned 51 cents per share in the quarter, while Wall Street expected 66 cents. Revenue was up 20 percent to $25.59 billion, yet analysts expected $26.06 billion. In the same quarter a year earlier, Amazon earned 21 cents a share.
Shares of Amazon rose 5 percent during the regular session Thursday to $403.01 but were sinking $40 after the closing bell.