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Amazon Shares Drop on Concerns of Rising Costs, India Growth

  • International losses widen; CFO says spending to pick up
  • Holiday-period sales boosted by advertising, cloud services
Bloomberg business news
Bloomberg Intelligence’s Jitendra Waral discusses the key takeaways from Amazon.com Inc.’s fourth-quarter results.(Source: Bloomberg)
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Amazon.com Inc. shares dropped after the e-commerce giant gave a tepid first-quarter sales forecast and raised concerns about rising costs, slowing retail growth and a murky outlook for its business in India.

Sales will be $56 billion to $60 billion in the current period, the company said Thursday, compared with analysts’ average estimate of $61 billion. Though fourth-quarter sales and earnings topped analysts’ estimates, growth in the North American retail unit slowed dramatically in the key holiday period, and comments about uncertainty in India sent the stock lower.