Amazon Projects Strong Holiday Sales, Cautions on Spending
- Shipping expenses jump faster than revenue, sparking concern
- Company’s AWS cloud service revenue increased 29% in quarter
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Amazon.com Inc. projected a steep jump in sales in the current quarter, topping analysts’ estimates, indicating the retailer expects the surge in online shopping during the pandemic to extend through the holiday season.
The company also warned that adjustments to its operations and greater spending due to Covid-19 would continue to weigh on its profitability. Amazon’s operating income forecast fell short of analyst estimates, sending shares down about 1.5% in extended trading.