Amazon shares tumble following dire outlook

While Amazon's third-quarter earnings topped Wall Street estimates, its revenues and fourth-quarter outlook fell short of expectations.

Revenue increased 29% year-on-year, with North American sales growing 35% to $34.3bn and international sales improving 13% to $15.5bn.

Net income improved more than ten-fold to a new record high of $2.8bn - making the quarter Amazon's fourth straight quarter of topping $1bn in profits.

Amazon's $3.7bn in operating income well and truly topped estimates of a $2.1bn reading as growth of the tech giant's high-margin businesses, such as its cloud, advertising and third-party seller services led the way.

AWS also showed strong growth, with sales jumping 46%, while revenues from Amazon's "other" category soared 123% year-on-year to $2.5bn.

Amazon told investors that it expects fourth-quarter revenues to be in the vicinity of $66.5bn and $72.5bn, well below consensus estimates of $73.79bn.

The online retailer's fourth-quarter operating income guidance of $2.1bn to $3.6bn was short of analysts' expectations of $3.9bn.

As of 0130 BST, Amazon shares had tumbled 7.42% to $1,650 each.