Amazon reports lower profits as it invests big for the holidays

Amazon invested big in the third quarter to make good on its promise of quick, reliable holiday deliveries. The retailer opened 18 warehouses worldwide, according to its report released today, and another five in October. Amazon opened only three in the first half of 2016. As a result, management has forecast that 4th quarter operating income will range from zero to $1.25 billion, potentially well below analysts’ estimates of $1.62 billion.