Amazon fails to deliver
Amazon’s forecast for third-quarter sales missed Wall Street expectations on Thursday, as more consumers return to brick-and-mortar stores after shopping more online for the past year due to the pandemic.
Shares of Amazon, which is only $170 billion away from joining the $2 trillion marketcap club, were down 5 percent in extended trading.
The company, headed by CEO Andy Jassy, expects current-quarter sales of between $106 billion and $112 billion, or to grow between 10 percent and 16 percent.
Analysts were expecting $118.9 billion, according to IBES data from Refinitiv.
The speedy vaccine rollout and easing of restrictions have led consumers to venture out to stores, while adapting new ways of shopping such as click-and-collect, in competition with fast delivery services for online orders provided by Amazon and its peers.
The company also reported a rare quarterly sales miss, amid increased competition from retailers such as Walmart and Target.