Amazon projected current-quarter sales below Wall Street estimates on Thursday as decades-high inflation and intense competition from rivals such as Walmart weigh on its retail business.
Shares of the world’s largest e-commerce company fell nearly 19% in trading after the bell.
After recording blistering growth during the pandemic, tech giants including Amazon are seeing a slowdown in demand as people return to outdoor activities and rely less on the internet for their day-to-day needs.
The world’s biggest online retailer, helmed by CEO Andy Jassy, forecast net sales of between $140 billion and $148 billion for the fourth quarter. Analysts were expecting $155.15 billion, according to IBES data from Refinitiv.
Amazon’s net sales were $127.1 billion in the third quarter ended Sept. 30, little lower than analysts’ expectations of $127.46 billion, according to IBES data from Refinitiv. Net income fell to $2.9 billion from $3.2 billion a year earlier.
[Written in collaboration with other media outlets with information from the following sources]
