Amazon reported strong increases in third-quarter sales, citing once again its low pricing and free shipping for success. But investors may have been hoping for an even larger increase, because Amazon's share prices fell over 8% in after-hours trading. The company netted a profit of $80 million for the quarter, an increase of 313% over last year’s figures, according to CNNMoney.
Amazon beat analysts’ estimates of 18 cents per share profit by a penny, but other factors may have disappointed. "The stock's guidance for the year was a little below what the Street expected," a Lazard Capital analyst said. Meanwhile, another analyst noted "margin contraction," saying that with increased selection and lower prices ahead of the holiday season, "you end up taking a bigger hit."