Amazon shares fall as profit misses FactSet forecasts

Amazon shares fell more than seven percent in after-hours trading Thursday after the company reported third-quarter profit and total revenue below forecasts compiled by FactSet, even as its AWS cloud business grew strongly.

Amazon reported $201.9 billion in total revenue and $20.7 billion in profit for the quarter. FactSet had put expectations at $202.2 billion in revenue and $21.5 billion in profit. Advertising services revenue was $19.6 billion, also below the $20.8 billion expected.

The company said it still expects to spend $220 billion on capital expenditures this year, mainly on artificial intelligence investments.

Chief executive Andy Jassy said Amazon may have two trillion-dollar revenue businesses in the next five to 10 years. He also said demand for Amazon’s Trainium chips was strong and that the company planned to make them more broadly available late next year.

The results came during a difficult week for large technology stocks. Alphabet shares fell after its own profit came in below FactSet forecasts, while Intel dropped after saying it expected a prolonged slowdown in personal computers.