E-commerce giant Amazon saw its stock sliding more than 7 per cent as it missed revenue expectations and provided a weak forecast for the third quarter (Q3).
This happens despite posting a $100 billion-plus quarter third time in a row. It was down from $115.2 billion as estimated by global analysts.
For the second quarter (Q2), the net sales increased 27 per cent to $113.1 billion, compared with $88.9 billion in the second quarter of 2020, the company said in a statement late on Thursday.
Amazon Web Services (AWS) grew its revenue 37 per cent at $14.81 billion in the second quarter, surpassing $14.20 billion as estimated by analysts.
For the third quarter, Amazon expects revenue between $106 billion and $112 billion, below the market estimates of $119.2 billion.
“Over the past 18 months, our consumer business has been called on to deliver an unprecedented number of items, including PPE, food, and other products that helped communities around the world cope with the difficult circumstances of the pandemic,” said Andy Jassy, Amazon CEO.
“At the same time, AWS has helped so many businesses and governments maintain business continuity, and we’ve seen AWS growth re-accelerate as more companies bring forward plans to transform their businesses and move to the cloud,” he added.
Net income increased to $7.8 billion in the second quarter, or $15.12 per diluted share, compared with $5.2 billion, or $10.30 per diluted share, in the second quarter last year, the company said.