Amazon shares fell sharply after the company warned it expects sales growth to slow as the pandemic fades, while at the same time it was hit with a record fine from the European Union.
Shares of the Seattle-based e-commerce giant fell more than 7.5% to 3,327.59 at the close on Friday after it posted a weaker-than-expected second-quarter performance, reporting $113 billion in revenue compared to analysts' expectations. of 115 billion dollars.
The company also signaled that the easing of coronavirus restrictions could mean lower sales growth. While revenue rose 44 percent in the first quarter of this year, that figure fell to 27 percent for the period ended June 30. Sales may only grow as much as 16 percent in the third quarter, Amazon said.
The European Union hit Amazon with a record $886 million fine for violating the bloc's privacy laws when processing personal data, a decision Amazon called undeserved.
Earlier in July, Amazon founder Jeff Bezos resigned as CEO before blasting off into space and eating Skittles.
Thursday's earnings call was overseen for the first time by the company's new CEO, Andy Jassy—and the company's worse-than-expected performance shows that the new honorary head has his challenges.
(BalkanWeb)
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