Amazon stocks plummet on missed fourth-quarter revenue

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The holiday did not bring so much joy to the giant online retail firm.

Amazon stocks ended in the negative territory on Thursday session as the free-spending company reported a better-than-expected fourth quarter earnings but its revenue for the same period fell short of Wall Street estimates.

Holiday Breeze

Shares of the online retail giant tumbled sharply by as much as 4% to $803.45 as the company’s revenue for the holiday season, came in at $43.7 billion, from a jump of 22% from a year prior, but $1 billion short of Wall Street’s $44.7 billion forecast for three months ending in December.

Despite missing expectations, the Seattle, Washington-based firm claimed that its December sales were the best holiday sales recorded ever, with sales from the North America building up 22% at $26.24 billion compare to a year ago while its international sales ballooned by 18% at $13.97 billion.

The giant e-commerce posted a strong 2016 record as its annual net income soared to a whopping $749 million, or $1.54 earnings per share, a huge pull away from the previous year tally of just $468 million or $1 eps.

The firm’s cloud service division, the Amazon Web Services, drew a big performance in the last quarter as it logged a revenue of $3.54 billion from a 47% advancement, as millions of active users continue to increase.

Meanwhile, with the company’s maximum effort to meet the growing demands of shoppers, Amazon spent $42.49 billion from $34.64 billion last year as the firm invested heavily in online infrastructure and other projects.

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