Online retail giant Amazon has returned to profitability after two consecutive quarters of losses, but shares have fallen.

The retailer's shares plummeted by 18 per cent, due to weaker than expected sales, as reported by Retail Gazette.

Amazon reported revenue of $127.1 billion (£109.99 billion) for the three months to 30 September 30, slightly down on the $127.4 billion (£110.25 billion) analysts predicted.

In the past two quarters, the retailer's sales have grown at around seven per cent, its slowest in nearly 20 years.

Amazon expects revenue for the current quarter, including key Christmas trading, to be between $140 billion (£121.16 billion) and $148 billion (£128.08 billion), a growth of between two and eight per cent on the same quarter last year.

Amazon said that, despite the current economic challenges, it will continue to focus on customer experience for the Christmas shopping season.