Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Amazon Falls After Record Growth Gives Way, Spending Slows  

Stock MarketsJul 30, 2021 05:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Dhirendra Tripathi

Investing.com – Amazon (NASDAQ:AMZN) stock slumped 6.0% in Friday’s premarket trading following as the company’s second-quarter revenue numbers, while robust, show signs of growth slowing.

Stimulus checks, low interest rates and fear of the virus all combined to fuel record purchases of groceries, gadgets, exercise equipment and furniture over last five quarters. A tempering of runaway sales growth numbers was expected after an unprecedented shopping binge.

But the drop to 27% growth in net sales from 44% in the first quarter of the ongoing financial year and 40% of April-June 2020 caught the market by surprise.

A push to sales by moving up Prime Day to June didn’t help much. Sales since May 15 have been up just in the mid-teens excluding Prime Day, Amazon’s Chief Financial Officer Brian Olsavsky was quoted by Reuters as saying

Net sales came in at $113.1 billion. They were lower than analysts’ expectation of $115.33 billion, a rare miss for the company.

JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS), Piper Sandler and UBS all cut their price targets for Amazon stock, amid signs of challenging times for Chief Executive Andy Jassy who took over from Jeff Bezos only this month.   

Amazon Web Services continued to reap the benefit of shift to digital as more users went online and companies sought Cloud services to cater to their needs.

Revenue at AWS rose 37% to $14.8 billion. 

Group net income rose 48% from a year ago to $7.77 billion in the June quarter. Diluted earnings per share was higher at $15.12 and surpassed analysts’ expectation of $12.24.

Amazon now expects third-quarter net sales to be between $106 billion and $112 billion, which represents year-on-year growth of 10%-16%.

 

 

 

 

 

 

Amazon Falls After Record Growth Gives Way, Spending Slows  
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Shayaan Azeem
Shayaan Azeem Jul 30, 2021 7:17AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
follow my advice and make millions bruh
Trade Secret
Trading_sc Jul 30, 2021 7:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Amazon close your company, you are not at in demand in this market and for people. close it soon
Meru Pet
Meru Pet Jul 30, 2021 6:45AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
pre-market ? so we already know what is going to happen when it really opens ?
zen cool
zen cool Jul 30, 2021 6:36AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No stock can be legend all the time! admit it
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email