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Online retail giant Amazon has seen its shares drop 5% to $1,635 in early trading, after disappointing investors with a slow down in revenue growth.
Revenues grew 20% to $72.4bn in Q4 2018, compared with the 29% it experienced in Q3. The deceleration is widely considered the result of reduced margins from sales in India, increases in shipping costs within the US, and increased competition from American retailers Target and Walmart, which have been investing heavily in their online operations in a bid to close the gap.
The company said net sales are expected to be between $56bn and $60bn during Q1 2019, growth of between 10% and 18% compared with Q1 2018.
During the Christmas trading period, ending 31 December 2018, operating income increased to $3.8bn (£2.9bn), compared with $2.1bn (£1.6bn) in Q4 2017, and net income increased to $3bn (£2.2bn) during the period.
For the full year, Amazon recorded a net sales increase of 31% to $232.9bn (£178.2bn), compared with $177.9bn (£136.1bn) in 2017. This was excluding a $1.3bn (£995m) favorable impact from year-over-year changes in foreign exchange rates throughout the year.
