The third-quarter results were the second time running that billionaire Jeff Bezos' firm had fallen short of sales targets and, allied to a similar disappointment from Google-owner Alphabet GOOGL.O , they sent a shockwave through stock markets.
Alphabet disclosed, for example, that passengers of its self-driving Waymo minivans are now paying for rides, but the offering remains limited to the Phoenix, Arizona region and Waymo's finances are not broken out.
However, on Thursday night it said operating profits in the coming quarter could be as low as $2.1bn, flat with previous year.
Sales increased 29.33 percent from the third quarter of 2017.
"Google, Microsoft, and Walmart ... are more hard to kill", he said. "So those are a couple factors that hit the worldwide growth area in particularly", said Brian T. Olsavsky, chief financial officer at Amazon. Again, while the Street expected somewhere around $73 billion for the important holiday quarter, Amazon told investors to expect anywhere from $66.5 billion to $72.5 billion.
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The operating margin for AWS is up to 31 percent this quarter, Olsavsky noted. Shares in Europe and Asia also traded lower on Friday.
Amazon forecast fourth-quarter operating income between $2.1 billion and $3.6 billion, below the $3.87 billion expected by analysts, according to FactSet. Since the end of September, analysts have cut their 2019 revenue estimates by 1%.
Brian Olsavsky, Amazon's chief financial officer, said no fundamentals had changed, just some holiday timing in India and accounting differences. The outlook may reflect rising labor or shipping costs, he added.
Amazon's third-quarter report arrives a few weeks before the holiday shopping season, when Amazon and other retailers enjoy a weeks-long spike in sales. It purchased online pharmacy PillPack in June, which followed its US$13.7 billion acquisition of Whole Foods a year ago to jump start its grocery business.
The online retail giant has been a hot stock this year. (MSFT.O) and Apple Inc. Amazon isn't disclosing the total cost of the raises.
For years, Amazon has made expensive bets on new technology and programs, like its $13.7 billion acquisition of Whole Foods in 2017 to storm the USA grocery industry.
The Nasdaq dropped almost 2 percent, sharply cutting its gains for the year and moving deeper into correction territory, while the blue-chip Dow shed 1.1 percent and the benchmark S&P fell 1.56 percent, putting under threat their slim gains for the year.