Amazon's profit falls as faster shipping costs soar

Amazon pouring big money into Seattle City Council races

Amazon is putting more than $1 million into Seattle's City Council races, new donations that boost its spending on politics in its hometown this year to $1.45 million.

NEW YORK (AP) — Amazon's push for faster delivery is hurting its profits.

The online retailer reported third-quarter earnings Thursday that missed expectations. Its stock sunk 9% in after-hours trading.

Amazon is moving to cut its delivery time in half, to one day instead of two, for Prime members who pay $119 a year. The company has said the change would cost it more than it expected.

The Seattle-based reported net income of $2.1 billion, or $4.23 per share, in the quarter ending Sept. 30. That's 36 cents below what analysts expected, according to FactSet.

Its revenue, however, beat expectations. Amazon.com Inc. says revenue rose 24% to $70 billion.