Amazon shares dropped more than 4% in extended trading on Thursday after the company reported weaker-than-expected results for the third quarter and delivered disappointing guidance for the critical holiday period.
The E-commerce giant reported earnings of $6.12 and the company expected $8.92 per share. The company reported revenue of $110.81 billion and the company expected $111.6 billion. Amazon is reckoning with decelerating sales growth as consumers go back to physical stores and the company faces supply chain challenges. Revenue in the third quarter rose 15%, down from 37% growth in the same period a year ago.
Amazon said earlier this month it plans to hire 275,000 permanent and seasonal employees nationwide, in part to help deal with the holiday shopping rush. CFO Brian Olsavsky said last quarter was facing steep labor costs as it looks to hire and retain employees, including by doling out $3,000 sign-on bonuses and launching new perks like free college tuition.