Amazon reported third quarter revenue under estimates and provided a lowered fourth quarter outlook on Thursday, causing yet more jitters on Wall Street and in the industry as retail swings into the home stretch of the peak holiday season, and sending shares down 20% after hours.
Amazon has increased the price of its Prime subscription program in the U.S. for the first time in four years, going up 17% from $119 to $139 per year, as the company faces the reality of massive logistics costs and a flattening of its ecommerce sales vs. the hypergrowth of the early pandemic period.
FedEx’ Q4 top and bottom line fell short of expectations, the latter impacted by pension accounting adjustments and a settlement with California drivers.