Ben Stevens
Amazon’s shares have dropped more than seven per cent in afterhours trading as its first set of financial results under its new chief executive miss expectations.
In the three months to the end of June Amazon saw revenues rise 27 per cent to $113 billion, marking the third quarter in a row it has topped $1 billion.
Despite this the ecommerce giant missed consensus estimates of around $115 billion, largely due to its core retail business which grew at its slowest rate since 2019 at 15 per cent.
While profits saw healthy growth of 50 per cent to $7.8 billion, Amazon warned that profits would likely fall year-on-year in its current quarter, while estimating that operating income between July and September would come between $2.5 billion and $6 billion, down from $6.2 billion in the same period in 2020.
Aside from its core retail and logistics business, Amazon’s cloud computing arm Amazon Web Services (AWS) continued its solid performance.
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