Amazon (AMZN): Stock Drops For Third Day In A Row After Disappointing Forecast

Amazon (AMZN) has grown to become one of the world's most valuable companies. But the e-commerce giant has taken a step back due to a market downturn and disappointing revenue, resulting in its shares falling for the third consecutive day.

Amazon on Thursday also projected a slower holiday season than Wall Street expected, which contributed to the company's shares to slide. The dip continued into Monday, as shares fell by more than 6 percent and then carried over into a 0.55 percent drop on Tuesday.

Shares of Amazon closed at $1,530.42 on Tuesday.

Though Amazon’s stock price has grown by nearly 40 percent over the past year, it has dropped by nearly 25 percent since the beginning of September. The last time Amazon had a month as bad as October was in 2008.

Amazon chief financial officer Brian Olsavsky stated last week that the company will still have a strong holiday season, despite its lower-than-expected forecast. He attributed weaker projections to accounting and other small hindrances.

“We have everything ready to roll,” Olsavsky said in a conference call last week.

Amazon's Prime subscription service, which offers heavy discounts on some items and free shipping, could provide a boost in the November and December shopping period.

Record numbers of customers shopped on Amazon during last year’s holiday season, according to the company. That included 4 million new Prime sign-ups, or free trials, over the course of a single week.

Amazon has diversified its service offering over the past few years, between hardware products and even retail stores. Amazon plans on opening 3,000 of its cashier-less Amazon Go convenience stores around the U.S. by 2021.

Amazon briefly flirted with a $1 trillion market cap, trailing just Apple as the country's most valuable company. Disappointing earnings led to fellow tech firm Microsoft taking the second place spot behind the iPhone maker.