E-commerce giant Amazon posted revenue of $ 113.1 billion in the three months ended June 30, an increase of 27% from the same period a year earlier.
However, this performance remains below the $ 115.2 billion expected by analysts. That figure also marks a slowdown from the 40% sales growth Amazon posted in the second quarter of 2020, despite Prime Day falling in the June quarter of this year.
Amazon is also forecasting weaker sales growth for the next quarter. The company expects an increase in net sales of between 10% and 16% compared to the previous year. That would mark a notable drop from the 37% sales growth the company recorded in the third quarter of 2020.
Despite the decline in sales, profits exceeded expectations to reach $ 7.8 billion, in part due to the performance of the Amazon Web Services (AWS) division, which recorded more than $ 4 billion in profits. for the quarter.
Amazon shares fell more than 7% on Wall Street after the quarterly results were announced, effectively reducing the company’s market value by more than $ 100 billion.
Amazon founder Jeff Bezos stepped down as CEO earlier this month and became executive chairman. Andy Jassy, who long headed the cloud computing division of Amazon AWS, replaced him as CEO.
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