SAN FRANCISCO (Reuters) - Amazon.com Inc on Wednesday posted a 48 percent rise in quarterly net income, but gave a revenue forecast for the holiday quarter that fell short of Wall Street expectations, and its shares fell 16 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
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)