Investors sold Amazon shares as the company’s recent update further fueled fears about the economy.
Increasing competition from peers and buyers’ return to outdoor pursuits in the wake of the pandemic meant the company missed analysts’ expectations.
The e-commerce giant reported a 15% increase in revenue to $127.1 billion, but its international business shrank and growth at its lucrative cloud services arm slowed.
Shares fell 18% in after-hours trading.
Amazon also forecast far weaker-than-expected growth for the upcoming holiday shopping season, adding to jitters about an economic slowdown.
Amazon saw a boom in business during the pandemic as more activity shifted online. However, over the past year, sales growth has slowed significantly as consumer priorities shift and the cost of living rises.
Amazon founder Jeff Bezos, who remains CEO of the company, recently warned about the signs coming from the economy and wrote on Twitter that it was time to “shut the hatches”.
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