Amazon Q3 2018 had $56.6 billion in sales and $2.9 billion profit

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Online retailer Amazon witnessed a significant slowdown in growth from its worldwide business, blaming a late Diwali in India for the sluggish pace of growth.

Amazon has announced their financial results for the third quarter, revenue was short of Street expectations, and earnings absolutely crushed analysts' estimates.

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 US grocery industry.

Amazon is a company that seems to be midway through a transformation meant to bring soaring profitability via improving margin on the back of its truly staggering sales run rates. Additionally, analysts have slashed their earnings outlook for the fourth quarter by 9% to $5.35 per share.

The world's largest retailer is facing hurdles to boost sales in worldwide markets as well as increased competition at home from the likes of Best Buy, Target Corp and Walmart Inc, who are stepping up digital investments.

Amazon's worldwide sales grew at just 13% to $15.5 billion, compared to a growth of 29% a year ago.

"And we're not slowing down - Amazon Business is adding customers rapidly, including large educational institutions, local governments, and more than half of the Fortune 100". The Street wanted to hear $73.79 billion, but Amazon forecast between $66.5 billion and $72.5 billion.

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But the company tempered that standout result with a revenue shortfall in the third quarter and a revenue outlook for the holiday period that was a bit lighter than analysts had forecast.

Google has been fined $7.7 billion for antitrust violations in Europe over the last two years, and heightened attention on privacy, security, competition and the rise of artificial intelligence tools has led investors to fret about potentially costly regulatory scrutiny in the United States and elsewhere.

Amazon said revenue from the category and some other items grew 122 percent to $2.5 billion in the third quarter.

At Amazon Web Services, revenue jumped 46 percent to $6.7 billion. "The second thing is they're anxious about competition", he said, noting that there were both signs of a slowing economy and that major retailers were aggressively deploying strategies to compete with Amazon for holiday sales.

In a statement, CEO Jeff Bezos highlighted the momentum behind Amazon Business, the company's B2B platform.

In a time of low interest rates, Amazon and Google have offered investors the chance to hitch a ride on the fast-growing e-commerce, digital advertising and cloud-computing markets buoyed by a steady global economy, Bloomberg explained. Shares of No. 2 online ad firm Facebook Inc (FB.O), which faces questions about flattening usage limiting revenue growth, had fallen 12.5 percent and were trading at 19 times future earnings.