New York Post
Double blow for Amazon
Amazon shares tanked after the company warned it expects sales growth to slow as the pandemic wanes, while at the same time it got slapped with a record fine from the European Union.
The Seattle-based e-commerce giant’s stock dropped more than 7.5 percent to 3,327.59 at Friday’s close after it logged a weakerthan-expected performance during the second quarter, reporting $113 billion in revenue compared to analysts’ expectations of $115 billion.
The company likewise signaled that the loosening of coronavirus restrictions could mean lower sales growth. While revenue surged 44 percent in the first quarter of this year, that figure dropped to 27 percent for the period ended June 30. Sales may only rise as much as 16 percent in the third quarter, Amazon said.
Separately on Friday, 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 “without merit.”
Wedbush Securities managing director Dan Ives told The Post that the company missing expectations was more a result of investor overexcitement than issues with Amazon’s business.