Amazon Q4 view below Street, shares fall 15 percent

The online retailer, which has cut prices to spur sales in the weak U.S. economy, posted third-quarter net income of $118 million, or 27 cents per share, up from $80 million, or 19 cents per share, a year earlier. Revenue rose to $4.26 billion.

Wall Street analysts, on average, had been expecting earnings of 25 cents per share on revenue of $4.28 billion, according to Reuters Estimates.

Net sales for the fourth quarter, including the crucial holiday period, are expected to range from $6.0 billion to $7.0 billion, or growth of 6 percent to 23 percent, with operating income estimated at $145 million to $305 million.

Analysts, on average, expect sales of $7.00 billion in the fourth quarter, the company's busiest.

Amazon's results come as Wall Street is spooked by a lowered 2008 forecast last week from online auctioneer eBay Inc , which predicted a weak holiday season due to widespread softness in consumer spending.

Amazon shares, which have fallen 46 percent since January, dropped 15 percent to $42.70 in extended trading. They fell 24 cents to close at $49.99 on Nasdaq in regular trading.

(Reporting by Alexandria Sage, editing by Richard Chang)