Amazon, the world’s largest e-commerce company, has surpassed $100 billion in earnings for three consecutive quarters until this quarter, but it fell short of Wall Street’s expectations.
Compared to last year when it enjoyed reflective effects of the pandemic, the slowdown in growth was evident.
Amazon announced on the 29th (local time) that its second quarter of this year’s earnings were $113.08 billion.
After surpassing $100 billion in sales for the first time in the fourth quarter of last year, it made more than $100 billion in sales for three consecutive quarters until this quarter.
However, it fell short of the $115.4 billion average estimated by financial information company Factset.
Net profit rose 48 percent to $7.78 billion. It is the second largest net profit in the second quarter of history. On the other hand, sales growth in the second quarter recorded 27 percent, which is significantly slower than 41 percent in the same period last year.
Sales of cloud computing and advertising divisions increased 37% and 87%, respectively, but growth of online shopping, which is its main business, has slowed.
Sales of online shopping in North America, Amazon’s largest market, increased by 22 percent, but fell short of the growth rate (43 percent) a year ago.
Amazon’s third-quarter sales forecast was $106 billion to $112 billion, and its sales growth forecast was $10 to 16%. This figure is less than Wall Street’s estimated sales of $119.2 billion in the third quarter.
“People are going out more and more, and they spend time doing other things besides shopping,” Amazon Chief Financial Officer Brian Olsavsky said, predicting that sales will continue to decline in the future.