Even a $100 billion mark in revenues was not good enough for Amazon as the stock plunged as earnings missed estimates. The pandemic push for the e-commerce giant seems to be slowing as people get back to stores across the US.
Amazon’s revenue grew by 27% to $113.08 billion vs a 40% growth in the same period last year. The outlook was also not an upbeat one, the CFO told analysts, "We’re starting to lap that and that’s why you see some of the growth rate coming down.”, adding that Amazon expects to see slower growth continue for the next few quarters.
For July-September quarter which would be Andy Jassy's first quarter as CEO, Amazon said it expects to book sales between $106-$112 billion which transaltes to a growth of 10% to 165 which is much below street estimates.
Credit to the new CEO, Jassy managed unit of AWS saw revenue jump 37% the biggest year-over-year sales jump in two years. The company’s “other” revenue category, primarily advertising sales, gained 87% to $7.92 billion.