Amazon’s stock dropped nearly 10% in after-hours trading on Thursday, after the e-commerce giant fell short of its third quarter earnings estimates as it continues to expand its Prime 1-day shipping program.
Amazon’s shipping costs, due in part to its 1-day shipping plan, jumped 46% from the same time last year to $9.6 billion — marking a significant year-over-year jump from the previous quarters.
The Seattle-based company posted revenue of $70 billion, marking a 24% year-over-year increase in sales and topping analyst estimates of $68.8 billion in the process. Its earnings per share of $4.23 failed to meet Wall Street’s expectations of $4.60