Amazon Falls as Operating Profit Forecast Misses Estimates
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Amazon.com Inc., the world’s largest online retailer, decreased the most in more than a year after forecasting operating profit that missed estimates as the company invests in warehouses and digital content.
Shares fell 7.2 percent to $254.81 at the close in New York, the biggest decline since February 2012. Amazon predicted an operating loss of $340 million to a profit of $10 million, compared with analysts’ projections for a profit of $165.1 million. Net income in the first quarter dropped 37 percent to $82 million, or 18 cents a share, from $130 million, or 28 cents, a year prior.