Shares in Amazon fell sharply in extended trading after the internet company issued a disappointing fourth quarter forecast, despite exceeding expectations for earnings in the third quarter thanks to its cloud computing profits.
The clouded outlook sent Amazon shares down as much as 9 per cent. Fourth quarter operating income was forecast at between $2.1bn and $3.6bn, compared with $2.1bn in the final quarter of 2017.
Brian Olsavsky, Amazon’s chief financial officer, said the company was “ready to roll” for the holiday season — but always had to deal with uncertainty over the outlook for what is traditionally the biggest quarter of the year.
On Wall Street overnight, stocks staged a solid rebound after the previous day’s savage sell-off, as forecast-beating earnings reports from the likes of Microsoft, Ford and Twitter provided a more encouraging backdrop that left the S&P 500 up 1.9 per cent by the close.
In Asia-Pacific equities, futures tip Sydney’s S&P/ASX 200 to rise 0.4 per cent at the open, while Tokyo’s Topix is set to gain 1.2 per cent and Hong Kong’s Hang Seng is expected to climb 1 per cent when trading begins.
Corporate earnings reports out today include Kia Motors, Hitachi, Hutchison Port and Great Wall Motor.
The economic calendar for Friday is ready to roll (all times Hong Kong):
- 10.30: Singapore unemployment rate
- 12.00: Malaysia consumer price index
- 13.00: Singapore industrial production
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