Amazon stock continues to climb up and over $500 per share today after the company released its third quarter financial results, revealing soaring sales and even better-than-expected profits. If you missed the news or just want to see if it’s worth buying more shares of Amazon stock, this Amazon Stock after Hours News article will tell you what you need to know about the online retailer’s third quarter and why its fourth quarter should see even more growth.
The Bull Case
Amazon stock has been on a wild ride over the past 12 months, up over 10% at its peak in October but down roughly 20% in February. On Tuesday, Amazon released its fourth-quarter earnings report and sent shares plummeting by 17%. Here are some quick takeaways from Amazon’s investor relations release that could shed light on why Amazon stock fell so sharply, so quickly
The Bear Case
Amazon’s stock price has been extremely volatile following today’s disappointing earnings report. After hours, Amazon stock dropped as much as 7% before bouncing back to be down only 5% at time of writing. While Amazon posted slightly higher than expected revenue, it failed to meet analysts’ expectations for profits, and guidance was also below what investors had hoped for.
What's Next?
Amazon stock took a hit on Friday night after hours, even though it released encouraging third-quarter results. The company announced earnings of $1.79 per share and revenue of $24.3 billion—both numbers slightly exceeded Wall Street expectations of $1.76 per share and $23.81 billion in revenue, respectively. That said, Amazon stock fell as much as 9 percent following its earnings report and currently sits about 5 percent below its closing price on Friday evening.
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