Amazon's holiday-quarter forecast disappoints

A less than stellar quarter for online retailer Amazon, as it reported a slump in profit that it expects will continue through the holiday season.

The cause…

Heavy spending to maintain delivery operations, which diminished the company's windfall from online shopping.

Andy Jassy, who took over as Amazon CEO in July from founder Jeff Bezos, said in a statement the company would incur several billion dollars of extra expenses in its consumer business to deal with higher shipping costs, increased wages and labor shortages.

After a year of blockbuster results, Amazon is now facing a tougher outlook.

The company said it expects operating profit for the current quarter to be between $0 and $3.0 billion, far short of the $6.9 billion Amazon posted the year prior.

Amazon also missed expectations for third-quarter sales as consumers returned to stores after shopping online from their homes for over a year.

Shares of Amazon were down after hours.

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