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Amazon sparks fear of sales forecasts

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Amazon has forecast lower sales than expected in the first three months of this year, which has caused the investor's fear of slowing growth.

Stocks in the online gigant fell by almost 5% in trading after hours despite record sales and Christmas holiday gains.

Amazon expects sales growth between 10% and 18% in the first quarter, somewhat below forecast analysts.

The guilt of the currency exchange rates is partially guilty, the company said.

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In the three months to the end of the year, which included the key Christmas season, earnings rose 63 percent to $ 3 billion, while revenue grew by 20 percent to $ 72.4 billion.

Although it was better than analysts expected, it is still the slowest growth in sales since the beginning of 2015.

Expanding the company's profits has been greatly boosted by the growth of high-margin companies, including cloud services, advertising, and third-party sales.

Amazon's cloud computing technology, Amazon Web Services, which secured two-thirds of the company's profits in the last quarter, is one of the services the company is relying on to alleviate the slowdown in revenue growth in its store.

"On the profit front, Amazone's results are impressive," said Neil Saunders, an analyst at GlobalData Research Company.

However, Mr. Saunders said sales growth slowed down as Amazon matured, prompting questions about his future.

He said rivals such as Target and Walmart invested heavily in their online business and replied.

"Our data show that they have achieved solid customer gains and some of them have overshadowed the growth of the Amazon. In our view, the gap between Amazons and the rest is now narrowing."

"Amazon will now have to work twice as hard to achieve any future sales," he added.

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Founder and CEO of Amazons Jeff Bezos, who is also the richest man in the world, distinguished his smartphone Alex, saying he was the best-selling device company.

"Echo Dot was the best-selling product in all Amazon products globally, and buyers have bought millions of devices from the Echo family compared to last year," he said.

Nicholas Hyett, an analyst at Hargreaves Lansdown, said figures show Amazon's "merciless attack on High Street on Christmas."

He said the online trader "clamped his clutch" on their customers with additional services like Amazon Prime, which offers free shipping and other benefits.

"With so many opportunities, the biggest problem faced by Amazon CEO Jeff Bezos is the place where it's possible to focus attention," he added.

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