Seatle — Amazon.com on Thursday reported its first quarterly profit decline in more than two years, missing analysts’ estimates, amid higher spending to speed package delivery. Shares fell more than 7% in extended trading.
The ramped up spending in 2019 curbed investor enthusiasm for Amazon, whose shares had neared records as recently as July on growing profits driven by AWS, services for third-party sellers and advertising. Operating expenses during the third quarter climbed 26%, the steepest rise in more than a year, to $66.8bn. Shipping costs soared 46% to $9.6bn. Amazon’s costs for technology and content — largely salaries related to employees in research and development and infrastructure for AWS data centres — jumped 28% to $9.2bn. The company’s workforce increased 22% to 750,000 people.
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