Watch Newsy On TV

Amazon Shares Drop On Weaker-Than-Expected Holiday Season Prediction

SMS
Amazon Shares Drop On Weaker-Than-Expected Holiday Season Prediction
The company's stock plunged 10 percent before Friday's opening bell following its third quarter revenue report and fourth quarter lookahead.
SHOW TRANSCRIPT

It wasn't a good morning for Amazon on Wall Street Friday. 

Shares plummeted 10 percent before the opening bell. According to CNBC, that's the stock's biggest decline since it dropped 11 percent back in January 2014. 

Here's why investors are so concerned: the online retail giant released third quarter results Thursday, and its fourth quarter outlook wasn't quite what Wall Street was expecting. Amazon's predicting a weaker-than-expected holiday season, which is the most important sales period for the company. 

Now, this is all relative. Amazon's stock prices are still around $1600 a share, and the company's fourth-quarter revenue would still be between $66 and $72 billion.

Also on Friday, the Commerce Department released a pretty solid third quarter GDP report. It showed the U.S. economy grew 3.5 percent last quarter, thanks to a surge in consumer spending, which experts say indicates a strong economy.

Additional reporting from Newsy affiliate CNN